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Sector Update: Health Care Stocks Softer Late Afternoon

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-- Health care stocks fell late Monday afternoon with the NYSE Health Care Index easing 0.2% and the State Street Health Care Select Sector SPDR ETF (XLV) losing 0.3%.

The iShares Biotechnology ETF (IBB) shed 0.4%.

In corporate news, Eli Lilly (LLY) agreed to acquire Ajax Therapeutics for up to $2.3 billion in cash. The deal includes an upfront payment and subsequent payouts based on the achievement of clinical and regulatory milestones. Lilly shares fell 1.6%.

HCA Healthcare (HCA) may face pressure through at least H1 as investors rotate toward managed care, although better trends in March and in-line exchange dynamics support the longer-term outlook, RBC Capital Markets said. HCA Healthcare shares rose 3.2%.

Organon (OGN) shares jumped 17% after the company agreed to be acquired by India's Sun Pharmaceutical Industries for $14 a share in cash, valuing the company at $11.75 billion.

Moderna (MRNA) is facing a patent infringement lawsuit from CureVac, which alleged that Moderna's COVID-19 vaccine Spikevax used its proprietary mRNA technology without authorization, Reuters reported Saturday. Moderna shares fell 4.7%.

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