NEW YORK, January 1, 2026, 13:41 ET — Market closed
- Biotech names led healthcare stock moves into year-end on a run of FDA decisions, while the broader healthcare ETF slipped
- Vanda and Axsome surged on positive regulatory news; Corcept slid after an FDA rejection
- Traders turn to January macro data and late-month managed-care earnings for the next sector catalysts
Vanda Pharmaceuticals’ FDA win in motion sickness set the tone for outsized, stock-specific swings in healthcare shares as Wall Street paused for the New Year’s Day holiday. U.S. stock markets were closed Thursday.
The moves matter because regulatory calls can dominate small-cap biotech even when the broader healthcare sector trades like a defensive corner of the market. Investors also head into January watching how rates and earnings guidance reshape valuations after thin year-end trading.
In Wednesday’s final session of 2025, the Health Care Select Sector SPDR Fund (XLV) fell about 0.6% to $154.80, near the day’s low of $154.77 after touching $155.83. Vanda (VNDA) gained 25%, Axsome (AXSM) rose 23% and Corcept (CORT) slid 50% as the S&P 500 fell 0.73% on the day.
Vanda said the regulator approved Nereus, also known as tradipitant, to prevent motion-induced vomiting — triggered by mixed signals between the eyes, inner ear and body sensors — and the company expects to launch in coming months. The FDA based the decision on two late-stage studies in 681 patients, and the drug works by blocking a brain receptor linked to nausea and vomiting; it will compete with Viatris’ prescription scopolamine patch Transderm Scop and over-the-counter brands such as Bonine and Dramamine. H.C. Wainwright analyst Raghuram Selvaraju wrote that “Sales of tradipitant solely in this indication could exceed $100 million annually at peak in the U.S. alone.”
Axsome said the FDA accepted a supplemental application for AXS-05 to treat agitation in Alzheimer’s disease and granted it priority review, which targets a decision within six months rather than about 10 months. The agency set a Prescription Drug User Fee Act (PDUFA) action date — its decision deadline — of April 30, 2026, the company said.
Corcept fell after the FDA declined to approve relacorilant for hypertension secondary to hypercortisolism, and the company said it plans to meet with the agency to discuss next steps. Truist analyst Joon Lee said the request for more evidence could mean additional trials, Reuters reported.
Outlook Therapeutics tumbled after the bell after the FDA again declined to approve its eye drug Lytenava for wet age-related macular degeneration, sending the stock down nearly 70% after hours, Reuters said. Regeneron’s Eylea and Roche’s Vabysmo and Lucentis are among approved treatments for the condition.
The FDA-driven moves came as larger healthcare names traded more like the broader market, leaving XLV under pressure despite pockets of biotech strength. That split is likely to keep sector flows choppy early in 2026.
Outside the sector, investors digested fresh signs of cooling in the labor market, with U.S. jobless claims falling to 199,000 in the week ended Dec. 27, the lowest since late November. Fed minutes released Dec. 30 also pointed to deep divisions over the latest rate cut and flagged a heavy run of inflation and employment data ahead of the central bank’s late-January meeting.
Before the next session, traders will watch whether the holiday pause keeps the focus on idiosyncratic FDA catalysts or whether money rotates back toward broader healthcare ETFs.
For XLV, technicians are watching the $154.80 area around Wednesday’s close and the $154.77 low as near-term support, with $155.83 the session high and $156 a round-number test above it. Biotech traders will also be looking for follow-through after the outsized single-stock moves in VNDA, AXSM and CORT.
Beyond Friday, the next macro signposts are the U.S. December jobs report on Jan. 9 and the December consumer price index on Jan. 13, events that can reset rate expectations and healthcare valuations. UnitedHealth, the sector’s heavyweight insurer, has scheduled its full-year results and 2026 guidance for Jan. 27 before the market opens.
