Healthcare and Pharmaceutical Sector

National Vision Holdings delivered second-quarter 2026 adjusted diluted earnings per share of $0.25 on revenue of $498.8 million, topping consensus estimates. Net revenue rose 2.5% year-over-year, supported by a 3.4% increase in comparable store sales and an intentional shift toward higher-value product offerings and managed care customers. The company funded this margin expansion despite a 4.9% drop in overall customer traffic, particularly among self-pay shoppers deferring purchases at introductory price points. Management raised its full-year adjusted operating income guidance to a range of $119 million to $139 million while maintaining its adjusted EPS target of $0.94 to $1.09. The retailer ended the quarter with 1,281 stores after opening nine new America's Best locations and closing two.

PTC Therapeutics and Eli Lilly are acquiring the core assets of bankrupt gene-editing firm Sangamo Therapeutics for $161 million in upfront cash through a court-supervised auction. PTC won the bidding for Sangamo's investigational Fabry disease gene therapy, isaralgagene civaparvovec, agreeing to pay $111 million at closing alongside $100 million in potential approval-linked milestones. Eli Lilly is paying $50 million to acquire Sangamo's genetic medicine platforms—including its zinc finger, capsid delivery, and molecular integrase technologies—plus the preclinical prion disease program ST-506. The transactions displace earlier stalking horse arrangements, including a lower initial bid from Astellas Pharma for the Fabry asset. PTC plans to integrate the gene therapy into its existing infrastructure without building new capacity, relying on a rolling biologics license application expected for completion in the fourth quarter. Lilly's acquisition gives the pharmaceutical giant outright ownership of the blood-brain barrier-crossing STAC-BBB capsid platform, removing future milestone and royalty obligations from a previous 2025 licensing agreement. Other bidders bought miscellaneous tools and equipment for $2.55 million, bringing total expected proceeds to roughly $163.55 million before milestones. Both deals remain subject to final bankruptcy court approval and regulatory clearances, with Lilly's transaction expected to close around September 4.

The Trump administration directed the Centers for Medicare and Medicaid Services to end federal Medicaid and CHIP funding for youth gender-affirming care, including puberty blockers, hormone treatments, and surgeries. The rule takes effect October 13 and applies to individuals under 18 for Medicaid and under 19 for CHIP. CMS administrator Dr. Mehmet Oz directed the change following an administration review. The agency estimates the policy will reduce federal Medicaid spending by $175 million over the next decade. In fiscal year 2023, Medicaid and CHIP spending on gender-affirming care for minors totaled $31 million out of $923.7 billion in total outlays. The policy permits a six-month phase-out for children currently receiving hormone therapy and preserves federal coverage for mental health services. Legal challenges from civil rights groups are expected.