European life sciences stocks rise on strong sector momentum
XLV•European life sciences stocks rose 2.6% to 4.2% on Tuesday, while the STOXX healthcare index gained 1.7%. An analyst cited strong performance by U.S. peer Charles River and momentum in biotech and early clinical trials.
1. Sector shares rise
BioMerieux, Eurofins, Sartorius Stedim and DiaSorin rose between 2.6% and 4.2%. Bernstein analyst Delphine Le Louet said Charles River’s strong share-price performance was having a spillover effect on the sector, and that momentum in biotech and early clinical trials benefits companies involved in biopharma testing.
2. Healthcare momentum
Le Louet said the broader healthcare sector was outperforming because it is cash-rich and not too sensitive to interest rates, prompting investors to rethink allocations. The STOXX healthcare index rose 1.7%, among the top sectoral moves in Europe.
