Healthcare Stocks See Mixed Results, Bristol-Myers Squibb Acquires Mirati Therapeutics

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Healthcare Stocks See Mixed Results, Bristol-Myers Squibb Acquires Mirati Therapeutics
Credit: © Reuters.

On Monday, the healthcare sector experienced mixed results with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (NYSEARCA:XLV) recording gains, while the iShares Biotechnology ETF (NASDAQ:IBB) saw a decrease.

Illumina (NASDAQ: ILMN )'s shares fell 1.6% due to potential regulatory hurdles from the European Union over its acquisition of Grail, a cancer diagnostic developer, as reported by the Financial Times. The EU's concerns over this acquisition could pose significant challenges for the company.

In other news, Bristol-Myers Squibb (NYSE: BMY ), a prominent cancer drugmaker, saw its shares tumble about 5%. This drop came in response to the company's announcement of a $5.8 billion deal to acquire Mirati Therapeutics (NASDAQ:NASDAQ: MRTX ), a move that investors seem to view with skepticism. According to InvestingPro data, Bristol-Myers Squibb has a market cap of 118.24B USD and a P/E ratio of 14.99. Its revenue stands at 45.19B USD, although it has experienced a decline in growth at -4.15%. Despite the recent drop, InvestingPro Tips suggests that the company has high earnings quality, with free cash flow exceeding net income, and has maintained dividend payments for 53 consecutive years.

Mirati Therapeutics, on the other hand, holds a market cap of 3890M USD and has seen significant returns over the last week, month, and three months, according to InvestingPro data. Despite this, the company's revenue growth stands at -65.17%, and it does not pay a dividend to shareholders. InvestingPro Tips also indicates that the company is quickly burning through cash and does not anticipate profitability this year.

Despite an impending employee protest against working conditions, Walgreens Boots Alliance (NASDAQ: WBA )'s shares rose almost 2%. The rise in share price indicates that investors may not consider the protest as a significant threat to the company's operations or profitability.

Meanwhile, 23andMe, a leading personal genomics and biotechnology company, experienced a significant dip in its stock price with shares tumbling over 6%. This drop followed a security breach involving customer profile information from its DNA Relatives feature. The breach may have shaken investor confidence in the company's ability to protect user data, which is critical for businesses in the biotechnology sector.

For more insights and tips, consider subscribing to InvestingPro which offers an additional 13 tips for Bristol-Myers Squibb and 16 for Mirati Therapeutics.

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