Key Highlights

  • Accuray surged after announcing a Partnership with Samsung NeuroLogica to develop advanced imaging for its CyberKnife system.
  • Agenus jumped to $9.40 after Rodman & Renshaw analyst Michael King started coverage at Buy with a $19 target.
  • MediciNova tumbled after its Phase 2 drug lowered triglycerides but missed on a liver-fat measure.
  • Mirum Pharmaceuticals dipped despite meeting the main goal of a Phase 3 trial in chronic hepatitis delta.

While chipmakers and software stocks sank on Monday, September 28, biotech delivered a string of eye-popping gains, led by Kodiak Sciences (NASDAQ:KOD), a Takeover of Lifecore Biomedical (NASDAQ:LFCR) and a batch of deals and analyst calls.

Against the tide

Monday, September 28 was a rough day for most of Wall Street. The S&P 500 fell 59.72 points to 7,683.69, the Nasdaq Composite dropped 248.34 points to 26,820.38 and the Russell 2000 of smaller companies slipped 19.64 points to 2,817.91. The 10-year Treasury Yield hit its highest level since 2007, and chip stocks slid on reports that OpenAI paused Training of some frontier models.

Biotech told a different story. Health care was one of only three S&P 500 sectors to rise, and several smaller drug developers posted the kind of moves that dominate trader chatter.

Kodiak's knockout data

The headline act was Kodiak Sciences, which more than doubled, closing at $90.16. The company's pivotal Phase 3 DAYBREAK trial in wet age-related macular degeneration, a leading cause of vision loss, showed that both Zenkuda and tabirafusp-ted met their primary goal. "Both drugs achieved vision gains at one year that were not inferior to aflibercept," market reports reported, referring to an established treatment.

Chief executive Victor Perlroth said, "The strength of these DAYBREAK data positions us for the next stage of Kodiak's evolution, as we prepare for the planned commercialization of Zenkuda." The company plans to seek approval for Zenkuda in the fourth quarter.

Deals and contracts

Lifecore Biomedical soared after agreeing to be acquired by Webster Equity Partners for $6.28 a share in cash, plus contingent value rights worth up to $3.39 a share, for a total deal value of up to $663.7 million. "This transaction delivers immediate and compelling value," said Lifecore chief executive Paul Josephs.

Accuray (NASDAQ:ARAY) surged after announcing a partnership with Samsung NeuroLogica to develop advanced imaging for its CyberKnife system. PacBio (NASDAQ:PACB) climbed after Sampled won a Department of Veterans Affairs contract worth up to $27.1 million to run genomics work on PacBio's Revio systems.

Analyst calls and sympathy moves

Agenus (NASDAQ:AGEN) jumped to $9.40 after Rodman & Renshaw analyst Michael King started coverage at Buy with a $19 target. MBX Biosciences also gained, though no company-specific news was found.

Not every readout won

Biotech's Volatility runs both ways. MediciNova (NASDAQ:MNOV) tumbled after its Phase 2 drug lowered triglycerides but missed on a liver-fat measure. Mirum Pharmaceuticals (NASDAQ:MIRM) dipped despite meeting the main goal of a Phase 3 trial in chronic hepatitis delta. Adicet Bio also fell sharply, though the cause was unclear.

That mix is typical. Single trial results can make or break a small drug developer, which is why biotech can shine on a down day, or sink on an up one.

Kodiak's regulatory filing and launch plans are next

Kodiak's regulatory filing and any commentary on launch plans will be closely followed, as will the closing timeline for Lifecore's buyout, expected by the end of the fourth quarter. Biotech remains sensitive to rates because many companies need years of funding before profits arrive.

With futures pricing a majority chance of another Federal Reserve hike in October, the week's data matters: consumer confidence and JOLTS Tuesday, PCE Inflation Wednesday, the ISM Manufacturing survey Thursday and the September jobs report Friday.