Biotech Sector Shows Strong Momentum in Friday's Extended Session: GH Research Leads Rally Amid FDA Catalysts

The Big Picture: Biotech’s After-Hours Surge

Biotechnology stocks dominated extended trading on Friday, with multiple companies recording impressive gains that suggest growing investor appetite for the sector. The movement signals renewed confidence despite a relatively quiet news environment, as market participants positioned ahead of key announcements and technical momentum carried several names higher.

GH Research Leads the Charge with 22% Jump

The standout performer was GH Research PLC (GHRS), which surged 22.36% during after-hours trading to reach $16.20, representing a $2.96 increase. The dramatic rally appears largely driven by anticipation surrounding a major company milestone: GH Research will unveil critical updates on Monday, January 5, 2026, at 7:00 a.m. EST regarding its Investigational New Drug Application (IND) for GH001 currently under FDA review. Additionally, the firm plans to disclose progress on its global Phase 3 pivotal trial targeting treatment-resistant depression (TRD). Such clinical-stage developments typically generate considerable investor enthusiasm and likely fueled Friday’s substantial move.

Mid-Range Gainers Extend Biotech Strength

Several mid-sized biotech players captured investor attention without requiring fresh headlines. Corvus Pharmaceuticals, Inc. (CRVS) climbed 7.24% to $7.85, adding $0.53 to its valuation. Zai Lab Limited (ZLAB) posted a 5.60% gain, closing at $18.30 after gaining $0.97, reflecting sustained interest in international biotech exposure. OKYO Pharma Limited (OKYO) advanced 5.38% to $2.35 with a $0.12 increase, though investors were likely also factoring in December 15 disclosures of insider accumulation by Executive Chairman Gabriele Cerrone through Panetta Partners Limited, which acquired 24,551 shares to bring total holdings above 10.5 million shares.

Smaller-Cap Plays Join the Rally

Phathom Pharmaceuticals, Inc. (PHAT) added 5.03% in extended trading, climbing $0.79 to reach $16.50 as of 6:46 p.m. EST. Forte Biosciences, Inc. (FBRX) gained 3.56% to finish at $24.45, representing a $0.84 increase. LifeMD, Inc. (LFMD) posted a 3.15% advance, gaining $0.11 to $3.60 by 7:48 p.m. EST. Among lower-priced names, Werewolf Therapeutics, Inc. (HOWL) climbed 3.58% to $0.67, up $0.023, exemplifying speculative interest flowing into smaller-capitalization biotech positions during the extended session.

Market Takeaway

The breadth of Friday’s after-hours biotech strength, with eight distinct companies posting gains despite minimal corporate announcements for most, underscores the sector’s current momentum. Whether driven by technical positioning, portfolio rebalancing, or genuine anticipation for upcoming catalysts like GH Research’s FDA update, the extended-hours rally demonstrates that investor appetite for life sciences names remains robust heading into the new trading week.