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Health Care Sector Update for 06/11/2020: NVO,RETA,BX,MRNA,MBIO

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.

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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