As we welcome 2024, the biotech sector concluded 2023 with significant activity. The SPDR S&P Biotech ETF (XBI) closed the last week of the year with an uptick of 0.9%, marking fund outflows of $155.65 million. Simultaneously, iShares Nasdaq Biotechnology ETF (IBB) and Direxion Daily S&P Biotech Bull ETF (LABU) closed with rises of 1% and 3%, respectively.
Notable corporate shifts included delisting postponement, a stock increase for Gracell Biotechnologies on the heels of AstraZeneca’s $1.2 billion acquisition, and a stellar $4.1 billion agreement made by Bristol Myers to acquire. There was also noteworthy progress in the clinical world, with Cytokinetics revealing encouraging Phase 3 study results for Aficamten, and Coherus BioSciences announcing FDA approval for Udenyca Onbody. Meanwhile, Immunome established an agreement to acquire assets from Atreca, but Milestone Pharmaceuticals faced rejection from the FDA for the new drug application of etripamil nasal spray.
Significant industry updates are anticipated from the upcoming JP Morgan Healthcare Conference in early 2024. This conference promises to provide a unique insight into the future of healthcare through a variety of presenting companies. As part of this event, an array of small and mid-cap firms, many transitioning from pre-revenue to pre-commercialization stages, are expected to share their progress and plans—an opportunity eagerly anticipated by investors and industry analysts.
We witnessed multiple notable movements this week. Cingulate announced that the Nasdaq exchange had postponed delisting its shares, causing its stock to soar by 275%, closing the week at $7.65 per share. Gracell Biotechnologies also experienced a stock rise of 56% after AstraZeneca agreed to acquire the company for $1.2 billion. Bristol Myers shared its intention to merge with RayzeBio, a radiopharmaceutical therapeutics (RPT) company, for a total equity value of approximately $4.1 billion. Simultaneously, Cytokinetics released positive Phase 3 study results for Aficamten, pushing its shares up by 89%. Finally, Coherus BioSciences announced FDA approval of Udenyca Onbody for use in cancer patients dealing with neutropenia, leading to a 64% increase in the share price.
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