NEW YORK, Jan 10, 2026, 13:31 EST — Market closed
- Despite the S&P 500 closing at a new record high, U.S. healthcare stocks wrapped up the week in the red
- As next week’s JPMorgan healthcare meeting approaches, dealmakers and executives are zeroing in on M&A activity again
- Two biotech IPO filings and an FTC court victory in a medtech deal provided new developments for the sector
U.S. healthcare stocks ended the week weaker, with the Health Care Select Sector SPDR Fund (XLV) slipping 0.5% to $157.31 on Friday. This ETF, often seen as a benchmark for major U.S. healthcare companies, has shown volatility as investors brace for a packed schedule of sector developments.
The industry’s annual dealmaking and investor tour is about to ramp up, and healthcare’s stakes are high. Traders are debating if this year will see a surge in biotech and medtech acquisitions, and whether major drugmakers move from discussion to actual deals.
The timing couldn’t be more awkward. The broader market finished its first full week of 2026 on a high note, with the S&P 500 hitting a record close on Friday. This came despite a softer-than-expected U.S. jobs report, which barely shook bets on Federal Reserve rate cuts later this year. (Reuters)
XLV trades roughly 2% under its 52-week peak of $160.59, hovering above initial support around $156.74—key zones where buyers often emerge. Top positions like Eli Lilly, Johnson & Johnson, AbbVie, and UnitedHealth Group can move the fund sharply when individual stock news breaks. (Barchart)
Bankers are banking on a wave of new deals. Dealmakers told Reuters they expect antitrust enforcement to ease under U.S. President Donald Trump, clearing the path for bigger transactions. They also pointed to recent White House deals on tariffs and drug pricing as added momentum. Jeremy Meilman of JPMorgan said this shift has prompted people to “dust off the playbook.” Meanwhile, LSEG data shared with Reuters showed healthcare M&A value jumped 56% in 2025, hitting roughly $403 billion, even as the deal count dropped 8% to about 4,159. (Reuters)
Two venture-backed biopharma firms took steps toward U.S. IPOs on Friday, signaling a fresh test of risk appetite in public markets. Eikon Therapeutics posted a nine-month net loss of roughly $254 million and aims to trade on Nasdaq under “EIKN.” Dermatology specialist Veradermics reported a $55.2 million net loss over the same period and is targeting a New York Stock Exchange debut under the ticker “MANE,” according to their filings.
Companies are using next week’s meetings to shift the story. Insmed reported that ARIKAYCE surpassed the high end of its 2025 revenue forecast, with preliminary unaudited 2025 global sales around $433.8 million. The company projects 2026 global ARIKAYCE revenue between $450 million and $470 million, while highlighting several data readouts planned for 2026. CEO Will Lewis said the next 18 months “could accelerate our trajectory,” ahead of the firm’s presentation in San Francisco on Monday, Jan. 12. (Insmed Incorporated Investor Relations)
The regulatory environment isn’t one-sided. On Friday, the U.S. Federal Trade Commission secured a ruling blocking Edwards Lifesciences’ bid to acquire JenaValve Technology. FTC spokesperson Joe Simonson called it “a major win.” Edwards confirmed it won’t move forward with the deal but raised its full-year 2026 adjusted earnings-per-share forecast to $2.90 to $3.05. (Reuters)
Investors hungry for more than conference soundbites will get their data soon. Johnson & Johnson is set to unveil quarterly results on Jan. 21 at 8:30 a.m. ET. UnitedHealth Group plans to share its full-year 2025 numbers and 2026 guidance on Jan. 27 before the market opens, with a teleconference kicking off at 8:00 a.m. ET. Humana follows on Feb. 11, reporting at 6:00 a.m. ET and hosting a live Q&A two hours later at 8:00 a.m. ET.
Healthcare bulls face a risk that January’s momentum fizzles out into endless meetings with little progress. If deal chatter fades or policy and reimbursement issues resurface, the sector’s defensive reputation won’t prevent steep losses in stocks tied closely to one or two late-stage assets.
The next key driver is macro data: the U.S. Labor Department will release the December consumer price index Tuesday, Jan. 13, at 8:30 a.m. ET. A stronger-than-expected reading could send yields higher, putting pressure on healthcare valuations. On the other hand, a weaker figure might sustain bets on rate cuts as sector events unfold later in the week. (Bureau of Labor Statistics)
