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Key Takeaways

Shares of several drugmakers and biotechnology firms moved higher on Wednesday, notching some of the day's top performances in the S&P 500.

Various regulatory decisions and clinical trial results boosted the top-performing pharmaceutical stocks: Gilead Sciences ( GILD ), Bristol-Myers Squibb ( BMY ) and Vertex Pharmaceuticals ( VRTX ).

FDA Approvals, Clinical Results Drive Price Action

Shares of Gilead Sciences rose about 2%, extending a multiday string of gains that has followed the approval of Livdelzi, a treatment for inflammatory liver disease that received clearance from the Food and Drug Administration ( FDA ) on Aug. 14. Gilead has also drawn positive attention for its portfolio of HIV treatments.

Bristol-Myers Squibb ( BMY ) shares added close to 2% after competitor Neurocrine Biosciences ( NBIX ) released mixed results from a mid-stage clinical trial of its schizophrenia treatment. Although a low dose of Neurocrine's drug helped reduce the severity of schizophrenia symptoms, the study raised concerns about whether the benefits would carry over in larger trials. Bristol-Myers Squibb's schizophrenia treatment KarXT is set for an approval decision from the FDA in September.

Vertex Pharmaceuticals ( VRTX ) shares were up almost 2% after the company said the FDA approved its new drug application for suzetrigine, an oral treatment designed to alleviate moderate to severe pain. The drug has reportedly been granted a priority evaluation from the regulator, with a projected action date of Jan. 30.

Pharmaceutical Industry Performance

While much of the market's attention has been focused on blockbuster weight-loss treatments from Eli Lilly ( LLY ) and Novo Nordisk ( NVO ), overall stock market returns in the industry have been relatively subdued this year. The SPDR S&P Pharmaceuticals ETF ( XPH ) is up around 7% in 2024, compared with gains of roughly 17% for the S&P 500.

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