The S&P 500 (SP500) closed in the green on Friday, after investors saw a week marked by earnings as well as global development involving news of a framework deal as Trump backed off tariff threats against Europe.
The S&P 500 Health Care Index Sector (XLV) also gained 1.98 during the week.
The top S&P 500 healthcare gainers and losers for the last week are as follows:
Top 5 Gainers:
Moderna (MRNA) +23.8%
Gilead Sciences (GILD) +11.9%
Vertex Pharmaceuticals (VRTX) +6.91%
DexCom (DXCM) +5.34%
UnitedHealth Group (UNH) +5.18%
Top 5 Losers:
West Pharmaceutical Services (WST) -15.3%
Abbott Laboratories (ABT) -12.7%
Agilent Technologies (A) -6.9%
Humana (HUM) -6.3%
Mettler-Toledo International (MTD) -6.2%
Here are some of the important healthcare stories from this week:
J&J posts Q4 revenue beat as Pharma, MedTech units outperform
Johnson & Johnson (JNJ), the earnings bellwether for the healthcare sector, reported better-than-expected revenue for Q4 2025 on Tuesday thanks to its Pharma and MedTech divisions. However, the shares of the New Jersey-based healthcare giant slipped ~2% premarket as its adjusted earnings for the quarter did not exceed the consensus.
“2025 was a catapult year for Johnson & Johnson, fueled by the strongest portfolio and pipeline in our history,” CEO Joaquin Duato remarked ahead of the earnings call.
The company reported $24.6B in revenue for the quarter compared to $24.16B in the consensus, while its adjusted earnings for Q4 stood at $2.46 per share, in line with analysts’ expectations.
As for segmental performance, J&J’s Innovative Medicine and MedTech units added $15.8B and $8.8B to the topline, exceeding the $15.45B and $8.67B projected by analysts, respectively, according to Bloomberg data.
Additionally, the company initiated its 2026 outlook, indicating $11.53 of adjusted earnings per share on $100.5B of reported sales, implying 6.9% YoY and 6.7% YoY growth at the midpoint, compared to $10.80 and $93.76B in the consensus, respectively.
Microsoft in pact with Bristol Myers for AI-based early detection of lung cancer
Bristol Myers Squibb (BMY) on Tuesday announced a collaboration with Microsoft (MSFT) to speed up early detection of lung cancer using the tech giant’s artificial intelligence-powered radiology technology platform.
As part of the deal, the FDA-cleared radiology AI algorithms will be implemented through Microsoft’s (MSFT) Precision Imaging Network, which is widely adopted by various U.S. healthcare providers.
MSFT’s Precision Imaging Network leverages AI capabilities to detect lung diseases through X-ray and CT images.
One of the key objectives of the partnership is to widen access to early detection across rural hospitals, community clinics, and other medically underserved communities in the U.S., the companies said.
GSK to buy RAPT Therapeutics in deal valued at $2.2B
GSK (GSK) agreed to acquire RAPT Therapeutics (RAPT), a US-based biotech developing treatments for patients with inflammatory and immunologic diseases, in a deal valued at $2.2B.
Under the terms of the agreement, GSK will pay RAPT Therapeutics shareholders $58.00 per share at closing for an estimated aggregate equity value of $2.2B. Net of cash acquired, GSK’s estimated upfront investment is $1.9B.
GSK’s subsidiary is obligated to commence a tender offer to acquire all outstanding shares of RAPT common stock for $58.00 per share in cash within 10 business days of signing. The transaction is expected to close in the first quarter of 2026.
The acquisition covers ozureprubart, a long-acting anti-immunoglobulin E (IgE) monoclonal antibody, currently in phase IIb clinical development for prophylactic protection against food allergens. GSK will gain the global rights to the ozureprubart program, excluding mainland China, Macau, Taiwan, and Hong Kong.
UnitedHealth rebating profits from ACA plans to customers
UnitedHealth Group (UNH) CEO Stephen Hemsley said that the insurer would rebate profits made from its Affordable Care Act plans to customers as Congress continues to debate whether to extend premium tax credits.
“Though UnitedHealthcare is a relatively small participant in the individual ACA market, we will voluntarily eliminate and rebate our profits this year for these coverages, as Congress continues to work toward more long-term solutions,” Hemsley said in prepared testimony.
During the company’s Q3 2025 earnings call in late October, UnitedHealthcare Business CEO Timothy Noel said that the average ACA marketplace plan in 2026 would increase more than 25%.
Moderna cuts R&D on vaccines amid U.S. pushbacks
Moderna (MRNA) CEO Stéphane Bancel said on Thursday that his company will not fund further late-stage development of vaccines as the U.S. government pushes back against immunizations.
“We have said very publicly to all our investors that we do not foresee investing in a new Phase 3 study in the foreseeable future in vaccines,” Bancel said in an interview with Bloomberg TV on the sidelines of the World Economic Forum in Davos, Switzerland.
His remarks came as the COVID-19 vaccine maker faces a reversal of fortunes under the Trump administration, where Robert F. Kennedy Jr. leads the Department of Health and Human Services.