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Sector Update: Healthcare Stocks Softer in Afternoon Trading

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Healthcare stocks edged lower Friday afternoon, with the NYSE Healthcare Index and the State Street Health Care Select Sector SPDR ETF (XLV) each decreasing about 0.1%.

The iShares Biotechnology ETF (IBB) rose 0.5%.

In corporate news, Jazz Pharmaceuticals (JAZZ) shares fell 1.3% after it said a phase 3 trial of Zepzelca in second-line metastatic small cell lung cancer failed to meet its primary endpoint.

Avalo Therapeutics' (AVTX) lead drug abdakibart is now a cleaner immunology story following positive phase 2 trial data to treat skin disease hidradenitis suppurativa, BofA Securities said. BofA started coverage of the stock with a buy rating and a price target of $35. Avalo shares jumped 6%.

Cogent Biosciences (COGT) said Bezuclastinib showed "rapid and deep" clinical benefit in advanced systemic mastocytosis patients

following detailed and updated trial results. Shares rose 1.6%.

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