Healthcare Stocks Rise and Fall: cbdMD, Merus, and Tilray Brands Lead Gainers; MoonLake, Kala Bio, and IO Biotech Lead Losers

Healthcare stocks experienced significant price movements on Monday, with cbdMD, Zura Bio, and Enanta Pharma gaining 116.3%, 42.94%, and 42.27% respectively. Losers included MoonLake, Kala Bio, and IO Biotech, which declined 89.3%, 89.3%, and 78.13% respectively. Other notable losers included Applied Therapeutics, Larimar Therapeutics, and bioAffinity Technologies, which fell 50.48%, 29.54%, and 23.17% respectively.

Healthcare stocks experienced significant price movements on Monday, with notable gains and losses reported across various sectors. The day's intraday session saw cbdMD (AMEX: YCBD) shares rise by 116.3% to $1.35, Zura Bio (NASDAQ: ZURA) stock move upwards by 42.94% to $3.44, and Enanta Pharma (NASDAQ: ENTA) stock increase by 42.27% to $11.24. Meanwhile, MoonLake (NASDAQ: MLTX) shares declined by 89.3% to $6.61, Kala Bio (NASDAQ: KALA) shares fell 89.3% to $2.04, and IO Biotech (NASDAQ: IOBT) stock decreased by 78.13% to $0.35.

In London, healthcare shares led broad-based gains, with pharmaceutical giant GSK’s shares rising 2.3% following an announcement that CEO Emma Walmsley will step down in December and be replaced by company insider Luke Miels. AstraZeneca also rose 1% after revealing plans to directly list on the New York Stock Exchange while maintaining its London listing and headquarters.

The day's price movements were influenced by a potential U.S. government shutdown that could delay key economic data. President Donald Trump is scheduled to meet with congressional leadership later in the day to discuss extending government funding, with a shutdown potentially commencing on Wednesday and disrupting the release of key economic data, including the closely watched September non-farm payrolls report later this week.

Enanta Pharmaceuticals, Inc. (NASDAQ: ENTA) released topline data from its RSVHR Phase 2b study of zelicapavir in outpatient adults with acute respiratory syncytial virus (RSV) infection who are at high risk of complications. The study showed a clinically meaningful improvement in time to complete resolution of all 13 RSV symptoms with zelicapavir compared to placebo, with a benefit of 2.2 days for the overall efficacy population and 6.7 days for patients with congestive heart failure (CHF), chronic obstructive pulmonary disease (COPD), or age ≥75. The study also met key secondary virology endpoints, demonstrating a robust antiviral effect.

MoonLake Immunotherapeutics (NASDAQ: MLTX) faced a significant shift in market perception after the company's stock was downgraded from a "Buy" to a "Hold" rating by Jefferies. The downgrade was closely tied to the week-16 outcomes of MoonLake's Phase 3 VELA-1 and VELA-2 trials, which assessed the efficacy of sonelokimab against the HiSCR75 endpoint. Despite the detailed trial design, the market's response was overwhelmingly negative, resulting in a sharp decrease in MLTX's stock value.

Overall, Monday's market activity reflects the ongoing volatility and uncertainty in the healthcare sector, with investors closely monitoring potential disruptions from a U.S. government shutdown and closely watching key trial results and leadership changes.