What’s next for Walmart stock?
Walmart stock price continues to rise on Wednesday, rising 0.3% on the news that the US Food and Drug Administration will grant approval for the use of the new Nio brand of drug to treat people with Duchenne muscular dystrophy, the latest setback for the health-care giant.
Walgreens stock also climbed on the announcement, closing up 0.4% to $56.85.
The announcement marks a major win for the drugmaker, which has been trying to get the FDA to approve the drug, a rare treatment that is designed to slow muscle wasting.
Duchenne was first identified in the US in 2000, but it has become a serious disease in the past few years.
“The FDA’s decision today to approve Nio for Duchenna-Dysplasia-Myeloma is an important milestone in advancing the clinical development of Nio and in advancing Duchenniomyelitis,” Walmart CEO Bill Simon said in a statement.
“It’s a milestone in our history and a testament to the courage of our doctors and scientists.
This is a great day for the Walmart family, our employees and the patients who depend on us to continue to provide quality health care to our customers.”
Walt Disney shares jumped 4.4%, while Wells Fargo stock gained 1.3%.
Investors are expecting Walmart to make a big splash on Wall Street in the coming months.
For the year, the company has sold $3.3 billion worth of shares, according to FactSet.
In March, the FDA approved the first phase of the Nio drug for Duchene Myeloma, the first such approval for any condition for the disease.
The FDA has approved the use on two other Duchennes, and in May, the agency approved the treatment for Ducene Myelocysticum, another condition.
Last month, the drug was approved by the US FDA to treat Duchennics.
Earlier this month, Walmart reported earnings of $1.4 billion for the fiscal year that ended March 31, and it said its profit jumped 10% year over year to $10.8 billion.
Walmart has long been looking to grow its sales, and the company is looking to double the amount of goods it sells.
A new version of the drug that the company plans to use is already available, and sales for Nio were higher in the first half of the year than in the previous two quarters, according in a filing last month with the Securities and Exchange Commission.