-- Health care stocks declined late Tuesday afternoon, with the NYSE Health Care Index down 1% and the State Street Health Care Select Sector SPDR ETF (XLV) shedding 0.9%.
The iShares Biotechnology ETF (IBB) decreased 1%.
In corporate news, Passage Bio (PASG) faces a tougher path after US regulators told the company it will need to run a randomized study to support approval of its experimental treatment PBFT02, a move that adds time, cost, and uncertainty, Wedbush said Tuesday in a report. Wedbush downgraded Passage Bio's stock to neutral from outperform and cut its price target to $8 from $32. Passage Bio shares dropped 2.9%.
Merck (MRK) and Japanese health care company Eisai said Tuesday that phase 3 trials of two drug combinations failed to meet primary endpoints of progression-free survival and overall survival as a first-line treatment of patients with advanced clear cell renal cell carcinoma compared with Keytruda plus Lenvima. Merck shares fell 3.7%.
UnitedHealth Group (UNH) raised its full-year earnings outlook on Tuesday as the health insurance giant recorded an unexpected annual increase in its first-quarter results. Its shares jumped past 7%.
Quest Diagnostics (DGX) shares popped more than 4% after it reported higher Q1 adjusted earnings and net revenue and raised its 2026 outlook.