Markets

Health Care Sector Update for 12/23/2015: CELG,ADMS,GBSN

Top Health Care Stocks

JNJ +0.79%

PZE +0.40%

MRK +1.43%

ABT +1.66%

AMGN +0.59%

Health care stocks were climbing with the broader markets this afternoon, with the NYSE Health Care Index adding around 1.1% while shares of health care companies in the S&P 500 were up about 1.1% as a group.

In company news, Celgene Corp ( CELG ) rallied Wednesday after the biotech company said it has resolved a legal fight that will keep a rival drugmaker in India from producing a generic version of its Revlimid cancer medication for almost another decade.

As part of the settlement, Natco Pharma Ltd of India and its U.S. partner Arrow International agreed to not sell generic versions of the oral immunomodulatory drug for multiple myeloma and myelodysplastic syndromes as well as mantle cell lymphoma in the United States before March 2022.

After that time, the companies can begin limited sales under a licensing pact with Celgene, representing a percentage share of the U.S. market starting in mid-single digits and increasing gradually in subsequent years to around one-third of U.S. sales until January 2026 when Natco and Arrow can begin to sell unlimited amounts of its generic version of Revlimid.

U.S. patents covering Revlimid expire in April 2027. Financial terms of the licensing agreement and other terms of the settlement were not immediately disclosed. Natco and Arrow International also will need to receive approval for an abbreviated new drug application from the U.S. Food and Drug Administration before starting U.S. sales.

CELG shares were up nearly 11% at $122.94 apiece, staying within 2 cents of today's session high.

In other sector news,

(+) ADMS, (+57.9%) ADS-5102 drug candidate meets primary endpoint during Phase III testing, showing statistically significant drop in levodopa-induced dyskinesia in patients with Parkinson's disease compared with placebo after 12 weeks.

(-) GBSN, (-15.4%) Sells 2.7 mln units consisting of one share of series E convertible preferred stock and eight series C warrants, each convertible into four shares of common stock and exercisable at $2.55 a share.

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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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