09:11 AM EDT, 06/05/2025 (MT Newswires) -- Health care stocks were edging higher pre-bell Thursday with the Health Care Select Sector SPDR Fund ( XLV ) up 0.1% and the iShares Biotechnology ETF (IBB) recently advancing by 0.3%.

Alvotech ( ALVO ) and Dr. Reddy's Laboratories (RDY) said they have entered a collaboration and license agreement to co-develop, manufacture and commercialize a biosimilar candidate to Merck's ( MRK ) Keytruda. Shares of Dr. Reddy's Laboratories were up more than 4% premarket.

Avadel Pharmaceuticals ( AVDL ) shares were more than 3% higher after the company said Lumryz has been granted Orphan Drug designation by the US Food and Drug Administration to treat idiopathic hypersomnia, a chronic sleep disorder.

Liminatus Pharma ( LIMN ) shares were advancing by more than 75% after the company said it is now compliant with the Nasdaq listing rule requiring a timely filing of reports with the US Securities and Exchange Commission.