Health Care Stocks Surge on Positive Trial Results

Health care stocks saw notable gains as Summit Therapeutics, Relay Therapeutics, and Terns Pharmaceuticals reported significant advancements in cancer and obesity treatments, positively impacting investor sentiment.

Date: 09-09-2024

AI Rating: 8

Health care stocks are experiencing positive momentum in premarket trading. The Health Care Select Sector SPDR Fund (XLV) increased by 0.4%, while the iShares Biotechnology ETF (IBB) rose by 0.5%.

Specifically, Summit Therapeutics (SMMT) saw its shares increase by 30% following the announcement of positive data from the phase 3 HARMONi-2 trial. The trial indicated that ivonescimab monotherapy significantly improved progression-free survival compared to pembrolizumab for non-small cell lung cancer—an essential indicator for investors evaluating cancer therapies.

Relay Therapeutics (RLAY) also reported a gain of over 23%. The positive results surrounding their drug RLY-2608, which demonstrated clinically meaningful progression-free survival with a median of 9.2 months, reinforce the company's potential in cancer treatment and may heighten investor interest.

Lastly, Terns Pharmaceuticals (TERN) shares climbed more than 15% after reporting positive results from a phase 1 study of its obesity drug candidate TERN-601. This news may increase investor confidence in Terns' drug pipeline and its ability to address significant health concerns.

Stocks: SMMT RLAY TERN