FDA Approvals and Obesity Formulary Wins Drive Healthcare

Gilead Sciences ($GILD) received FDA approval on May 22, 2026, for Hepcludex injection to treat chronic hepatitis delta virus infection in adults without cirrhosis or with compensated cirrhosis, marking the first HDV treatment approved in the United States. Eli Lilly ($LLY) announced positive Phase 1b Heart-2 study results for Verve-102, an investigational in vivo base editing medicine designed to durably turn off the PCSK9 gene in the liver and lower blood cholesterol levels. Pfizer ($PFE) entered a strategic global licensing and collaboration agreement with Innovent Biologics for the research and development of 12 promising breakthrough early-stage and de novo cancer medicines, including licensing, co-development, and co-commercialization opportunities across antibody-drug conjugates with novel payloads and multi-specific antibodies. Bristol-Myers Squibb ($BMY) announced a strategic agreement with Anthropic on May 20, 2026, to deploy Claude AI across its research, clinical development, manufacturing, commercial, and corporate functions, moving beyond conversational tools to more advanced applications.

The FDA approved Hepcludex injection for $GILD to treat chronic hepatitis delta virus infection in adults, representing the first therapy cleared for this indication. Johnson & Johnson ($JNJ) announced the FDA approved a supplemental Biologics License Application to include evidence in the TREMFYA label for the inhibition of progression of structural joint damage in adults with active psoriatic arthritis, making TREMFYA the only IL-23 inhibitor proven to help stop further structural damage. Compass Pathways is advancing COMP360 psilocybin for treatment-resistant depression with Phase 3 success and expects to submit a rolling NDA by 4Q26. Regulatory momentum continues across novel mechanisms including psychedelics, gene editing therapies, and rare disease treatments.

$LLY shares jumped 3.4% after CVS restored Zepbound as a co-preferred option and simultaneously added Lilly's new oral obesity pill Foundayo, making Eli Lilly's full obesity medication portfolio accessible to all three of America's largest pharmacy benefit managers for the first time. This expanded formulary access significantly improves patient coverage and supports future sales growth for Lilly's obesity franchise. Meanwhile, UnitedHealth Group ($UNH) continues to attract attention after Berkshire Hathaway exited its remaining stake in the company, which trades at around $382.53 as it works through regulatory issues and implements changes including Optum Rx's transparent pharmacy benefit model. Analysts remain highly optimistic about $UNH stock prospects despite the Berkshire exit, with the company considerably outperforming its sector peers recently.

Intuitive ($ISRG), the global technology leader in minimally invasive care and pioneer of robotic-assisted surgery, announced the promotion of Global Senior Vice President Taylor Patton to Chief Commercial and Marketing Officer, effective July 1. Patton will join Intuitive's Executive Leadership Team, bringing experience from leading the company's endoluminal business. The leadership change comes as Intuitive continues to expand its surgical robotics footprint across multiple clinical applications beyond its core da Vinci platform.

Exelixis announced extensive upcoming presentations at the ASCO Annual Meeting in May 2026, highlighting new CABOMETYX data and pivotal zanzalintinib trials across multiple hard-to-treat cancers. The company announced a new Merck ($MRK) collaboration on the STELLAR-316 phase 3 colorectal cancer trial using MRD-guided enrollment, underscoring Exelixis' push to extend its oncology footprint beyond CABOMETYX. $PFE and Innovent's global collaboration encompasses a diverse portfolio of antibody-drug conjugates with novel differentiated payloads and multi-specific antibodies targeting breakthrough cancer treatments. Regeneron ($REGN) received a World Health Organization recommendation for investigational use of its Ebola antibody maftivimab in response to the current Bundibugyo Ebolavirus outbreak, with the most potent neutralizing antibody from Inmazeb showing broad activity against multiple Ebola species.

J.P. Morgan reinstated coverage on 14 large-cap biotechnology companies, arguing the sector is entering a major inflection point as pipeline successes increasingly translate into profitable and diversified commercial businesses. The ASCO Annual Meeting presentations from Exelixis and other oncology developers will provide key clinical data updates across multiple cancer indications. Compass Pathways' rolling NDA submission for COMP360 psilocybin in treatment-resistant depression expected by 4Q26 represents a potential milestone for psychedelic medicine approvals. The combination of FDA approvals, expanded payer access, and strategic partnerships signals strengthening fundamentals across healthcare subsectors.