Health care stocks were adding to their prior slide, with the NYSE Health Care Index declining 5.7% in late trade while the SPDR Health Care Select Sector ETF was down 5.7%.
The Nasdaq Biotechnology index also was posting a 4.4% decline this afternoon.
In company news, Novo Nordisk (NVO) fell 3% on Thursday after announcing its purchase of privately held Corvidia Therapeutics in a deal worth as much as $2.1 billion. Under terms of the proposed acquisition, Novo Nordisk will pay $725 million in cash for Covidia, with the , which focuses cardio-renal treatments company also eligible for up to $2.1 billion overall as it meet certain regulatory and commercial milestones.
Reata Pharmaceuticals (RETA) rose 28% after funds managed by The Blackstone Group (BX) led a $350 million royalty and equity strategic investment to help fund development of Reata’s bardoxolone methyl experimental therapy for chronic kidney disease. The deal will pay $300 million to the drugmaker in return for future royalty payments from global sales of bardoxolone and includes the $50 million purchase of 340,793 Reata’s class A common shares at $146.72 apiece.
Moderna (MRNA) was nearly 1% higher after the firm said it expects to begin phase III testing of its mRNA-1273 vaccine candidate for COVID-19 in July. The late-stage trial is expected to enroll around 30,000 subjects who will receive 100-microgram doses of the prospective vaccine.
Mustang Bio Inc (MBIO) fell 29% after the company priced a $35 million public offering of about 10.8 million common shares at $3.25 apiece. Net proceeds will be used to develop the company’s product candidates as well as for potential licensing and acquisition opportunities and for general corporate purposes.
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