Day 2 at the JPM healthcare brought another M&A deal with GSK’s purchase of a private clinical stage respiratory company for ~$1.4 billion (GSK to Buy Private Biotech, Strengthen Respiratory Pipeline | Nasdaq).
The CYTK acquisition rumors by NVS; however, were dampened by comments from NVS’s CEO that they were looking more for bolt-on ~$5B deals than >$10B+ takeouts.
Earnings preannouncements generally remained positive, and several larger cap commercial companies continued to rally. Controversial name SRPT made new highs for the year on rising speculation that FDA may authorize full approval for their gene therapy for the orphan disease DMD. SRPT reported negative data for the confirmatory trial in late October, but bulls are betting that FDA will move forward with an expanded approval regardless.
Two-way trading was seen across development stage names as post JPM consolidation is expected into earnings season and likely follow-on offerings for those that need to raise capital.