Biotech Stocks Rally After Hours Amid Clinical Momentum and Recent Updates

Biotech and healthcare stocks rallied after hours on Wednesday, with several companies experiencing significant price gains despite no new filings or press releases. Shares of Zhongchao Inc. (ZCMD), AbCellera Biologics Inc. (ABCL), Vor Biopharma Inc. (VOR), Incannex Healthcare Inc. (IXHL), Ovid Therapeutics Inc. (OVID), and BFRG surged 14.04%, 11.41%, 9.53%, 6.48%, 8.03%, and 6.94%, respectively. The gains were largely driven by technical momentum and recent clinical updates, with some companies experiencing breakout performances above their 52-week highs.

Biotech and healthcare stocks rallied significantly after hours on Wednesday, with several companies experiencing notable price gains despite the absence of new filings or press releases. The gains were primarily driven by technical momentum and recent clinical updates, with some companies breaking above their 52-week highs.

Shares of Zhongchao Inc. (ZCMD) surged by 14.04%, AbCellera Biologics Inc. (ABCL) by 11.41%, Vor Biopharma Inc. (VOR) by 9.53%, Incannex Healthcare Inc. (IXHL) by 6.48%, Ovid Therapeutics Inc. (OVID) by 8.03%, and BFRG by 6.94%. These gains were observed despite the absence of any new announcements, suggesting that investors were buoyed by broader market sentiment and recent positive developments in the biotech sector.

Incannex Healthcare Inc. Incannex Healthcare Inc. Reports Earnings Results for the Full Year Ended June 30, 2025^[2] reported earnings for the full year ended June 30, 2025, showing sales of USD 0.086 million compared to USD 0.012 million a year ago, and a net loss of USD 46.89 million compared to USD 18.46 million a year ago. Despite the financial losses, the company's stock price increased, indicating that investors were optimistic about the company's future prospects.

Sagimet Biosciences Inc. Sagimet Biosciences Announces Dosing of First Participants in Phase 1 PK Clinical Trial for Denifanstat and Resmetirom Combination^[1], a clinical-stage biopharmaceutical company, announced the dosing of the first participants in a Phase 1 pharmacokinetic (PK) trial of a combination of its oral once-daily fatty acid synthase (FASN) inhibitor, denifanstat, and a thyroid hormone receptor beta (THR-β) agonist, resmetirom. The Phase 1 PK trial is an open-label, 2-cohort study and will enroll approximately 40 healthy adult participants. The primary endpoints include safety, tolerability, and pharmacokinetic (PK) profile of the combination. Topline data are anticipated in the first half of 2026. If positive, the combination could advance to a Phase 2 trial for patients living with metabolic dysfunction-associated steatohepatitis (MASH).

The combination therapy aims to improve clinical outcomes for patients with cirrhosis of the liver, who currently have no approved options. The trial's success could lead to a new standard of care for MASH patients, including those with stage 4 fibrosis.

Overall, the after-hours rally in biotech and healthcare stocks reflects investor optimism about the sector's future prospects and the potential for new treatments and therapies to emerge.