Health-care companies rose as a slew of multibillion-dollar mergers continued a recent wave of consolidation in the sector.

The deal activity and investors' appetite for the weakest sectors in 2023 have pushed the health-care sector to the top of the 2024 industry groups on the S&P 500, noted one strategist. "It's going to be interesting to see what moves the 'haves' if you will, make, and what the 'havenots' do," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.

Companies such as Novo Nordisk and Eli Lilly, which have thrived because of a bonanza in weight-loss drugs, could be in a position to acquire competitors, said Joyce. "The have-nots might require deals to grow," said Joyce.

Among the deals revealed on the latest "merger Monday," medical-device maker Boston Scientific agreed to buy smaller rival Axonics for about $3.7 billion in cash.

Johnson & Johnson will acquire cancer-treatment developer Ambrx Biopharma in a $2 billion cash deal. Similarly, Swiss drug giant Novartis is close to acquiring heart-drug maker Cytokinetics. Shares of Regenxbio declined after the biotech concern lost a patent infringement lawsuit against Sarepta Therapeutics.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

01-08-24 1822ET