Healthcare Equities Retreat as Capital Shifts Toward Tech

Capital remains focused on mental health innovation, with Helus Pharma, Definium Therapeutics, Compass Pathways, GH Research, and Johnson & Johnson drawing significant investment for their treatment pipelines targeting major depressive disorder. Meanwhile, Genmab shares climbed following positive late-stage trial results for a lymphoma drug combination developed alongside AbbVie.

Regulatory and policy shifts are also shaping the market floor. Philip Morris International subsidiary Swedish Match USA secured a pivotal win as U.S. officials authorized its Zyn nicotine pouches to be marketed as less harmful than combustible cigarettes. Additionally, Medicare is set to expand its coverage scope on July 1, marking the first time the program will reimburse GLP-1 medications specifically prescribed for weight loss.