Health Care Stocks Rally as Investors Pivot from AI

The sector's momentum faces mixed individual results. Galderma shares stumbled following a second rejection by the U.S. Food and Drug Administration for its injectable treatment. The product was intended to compete directly with AbbVie’s Botox, but the regulatory setback leaves the Swiss skincare specialist without a clear path to market for the drug.

Meanwhile, French pharmaceutical firm Ipsen is expanding its rare-disease portfolio through acquisition. The company reached an agreement to purchase Swiss biotech developer Memo Therapeutics in a transaction valued at up to $800 million. This deal underscores a push for specialized growth as larger players continue to consolidate smaller biotechnology assets.