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Sector Update: Healthcare Stocks Softer Late Afternoon

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Healthcare stocks were lower late Wednesday afternoon, with the NYSE Healthcare Index down 0.3% and the State Street Health Care Select Sector SPDR ETF (XLV) decreasing 0.8%.

The iShares Biotechnology ETF (IBB) shed 0.9%.

In corporate news, Hims & Hers Health (HIMS) is being sued by the US Federal Trade Commission, the State of California, and the Utah Division of Consumer Protection, for allegedly sharing users' data with Meta (META), Snap (SNAP) and other online advertising companies, court documents show. Hims & Hers Health shares fell past 14%.

UnitedHealth (UNH) may lose significant funding as the Trump administration plans to terminate a Medicare prescription drug subsidy program, The Wall Street Journal reported. The government will end the $3.6 billion subsidy after 2026, which would have directed more than half of its funds to UnitedHealth next year, the report quoted the administration officials as saying. UnitedHealth shares were down 1.8%.

Boston Scientific (BSX) lowered its full-year guidance below Wall Street's estimates on Wednesday, citing factors including weak demand for its Watchman heart implant. Its shares were down 1.5%.

NeoGenomics (NEO) shares jumped past 15% after it reported better-than-expected Q2 results.

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