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Health Care Sector Update for 06/01/2020: ABIO,EBS,GILD,OCGN

Health care stocks trimmed a portion of their earlier declines, with the NYSE Health Care Index Monday falling 0.8% while the SPDR Health Care Select Sector ETF fell 1%.

The Nasdaq Biotechnology index fell 0.5%.

In company news, ARCA biopharma (ABIO) dropped 27% after Monday disclosing plans for a $9.4 million direct placement of 348,000 shares of its common stock and 694,222 at $9 apiece, or 37.3% under Friday’s closing price. The net proceeds will be used to begin testing of its AB201 drug candidate to treat abnormal blood clotting in patients with COVID-19.

Emergent BioSolutions (EBS) advanced almost 7% after the specialty drugmaker Monday said it received a $628 million task order under its existing contract with the Biomedical Advanced Research and Development Authority to provide molecule-to-market manufacturing capacity for potential COVID-19 vaccines and expanding the company’s viral and non-viral contract manufacturing.

Gilead Sciences (GILD) slid about 3.4% despite the drugmaker earlier Monday reporting more encouraging data for its remdesivir drug candidate as a potential treatment for COVID-19. A five-day treatment regimen showed patients treated with remdesivir over five days were 65% more likely to demonstrate clinical improvement from the disease after 11 days compared with patients in the standard of care group.

Ocugen (OCGN) dropped nearly 26% after the biopharmaceuticals company Monday said it was discontinuing a phase III trial comparing its OCU300 drug candidate in patients with host disease following ocular grafts when an independent data monitoring committee concluded the study was unlikely to meet its co-primary endpoints upon completion.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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