Dj Cervomed Files 8K - Other Events >Crvo

Health care stocks were higher late Wednesday afternoon, with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.5%.

The iShares Biotechnology ETF (IBB) rose 1%.

In corporate news, Grifols has decided not to welcome a new takeover bid by a third party as Brookfield Asset Management (BAM) intends to walk away from its plan to buy the company, Bloomberg reported, citing the Grifols family. In a statement sent to MT Newswires, Brookfield confirmed "it is not in a position to continue with a potential offer for Grifols." Grifols shares tumbled nearly 8%.

TransCode Therapeutics shares sank past 8% after the company said Wednesday it has signed a deal with institutional investors for a securities' sale worth roughly $8 million.

CervoMed shares jumped nearly 14%. The company said Wednesday it received orphan drug designation for its investigational drug neflamapimod from the US Food and Drug Administration to treat frontotemporal dementia.

Cooper is expected to exceed consensus estimates for both revenue and earnings per share in fiscal Q4 but its fiscal 2025 guidance may fall short of expectations due to worsening currency conditions, Needham said in an earnings preview on Wednesday. Cooper shares added 0.5%.

Health care stocks were higher Wednesday afternoon, with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each adding 0.7%.

The iShares Biotechnology ETF (IBB) rose 0.8%.

In corporate news, Brookfield Asset Management dropped its $6.8 billion offer to acquire Grifols , Bloomberg reported. Grifols shares sank over 8% and Brookfield was down 1%.

CervoMed shares surged 28%. The company said Wednesday it has received orphan drug designation for its investigational drug neflamapimod from the US Food and Drug Administration to treat frontotemporal dementia.

Novo Nordisk and KKR's joint acquisition of Sylvan International Biotechnology in China was cleared by the EU's antitrust review. Novo shares were shedding 0.7% and KKR was down 0.6%.

By Denny Jacob

CervoMed shares rose 15% after receiving the Food and Drug Administration's orphan drug designation for neflamapimod, its frontotemporal dementia treatment.

Shares were trading around $9.19. The stock is up 4.6% on the year.

The clinical-stage company said it's in discussions regarding the design of a proof-of-principle study while also continuing to prepare to advance neflamapimod into a Phase 3 trial in mid-2025.

Frontotemporal dementia is rare neurodegenerative disease that affects an estimated 50,000 to 60,000 people in the United States, roughly 110,000 in the European Union, with potentially higher prevalence in Asia and Latin America, said CervoMed.

Write to Denny Jacob at denny.jacob@wsj.com