Markets

Health Care Sector Update for 08/31/2017: NVO,IPXL,STDY

Top Health Care Stocks

JNJ +0.72%

PFE +1.61%

ABT +1.10%

MRK +0.50%

AMGN +1.99%

Health care stocks were leading the U.S. markets higher today, with the NYSE Health Care Index rising nearly 1.2% while shares of health care companies in the S&P 500 were up almost 1.4% as a group.

In company news, bluebird bio ( BLUE ) flew to a nearly two-year high on Thursday, advancing over 11% to its best share price since September 2015 at $125.15 apiece after after analysts at BMO Capital today raised their price target for the specialty pharmaceuticals company's stock by $26 to $134 a share, citing regulatory approval for a rival's chimeric antigen receptor T-cell therapy.

Wednesday's approval of Novartis' ( NVO ) Kymriah leukemia treatment by the U.S. Food and Drug Administration was a "de-risking event for the entire CAR-T space, BMO analyst Matthew Luchini wrote in a new research note today. bluebird has been working to develop a similar immunotherapy medication and Luchini said Novartis' recent regulatory success boosts the odds bluebird's bb2121 drug candidate also will gain FDA clearance from 45% previously to around 60% now.

The analyst also increased his projected price for bb2121 by $75,000 to $300,000 based on Novartis giving Kyriah a $475,000 pricetag,

In other sector news,

(+) IPXL, (+19.8%) Specialty drugmaker Shanghai Fosun Pharmaceutical Group discloses owning 3.9 mln of the company's shares, representing a 5.2% passive stake.

(-) STDY, (-33.1%) FDA issues refusal to file letter to the company regarding its new drug application for its Trevyent drug candidate to treat pulmonary arterial hypertension.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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