Sector Update: Healthcare Stocks Gain Late Afternoon
Healthcare stocks were higher late Thursday afternoon, with the NYSE Healthcare Index and the State Street Health Care Select Sector SPDR ETF (XLV) each adding 2.3%.The iShares Biotechnology ETF (IBB) climbed 2.1%.In corporate news, AbbVie (ABBV) and other healthcare stocks were rising after the Trump administration reportedly proposed a new rule to curb hospital drug markups in Medicare. According to The Associated Press, the rule targets hospitals in the 340B program, which allows them to buy outpatient drugs at reduced prices for low-income patients but often bill insurers at higher rates and keep the difference. AbbVie rose 3.8%, Johnson & Johnson (JNJ) was up 3.2%, Bristol-Myers Squibb (BMY) climbed 3.4%, and Merck (MRK) added 2.7%.Crinetics Pharmaceuticals (CRNX) shares jumped 9% after UBS started coverage of the stock with a buy rating and a price target of $55 per share.Ensign (ENSG) shares rose 1.4% after the company said it has purchased the real estate and operations of two skilled nursing facilities in Texas.DarioHealth (DRIO) shares jumped 5.9% after it said Thursday that a health insurer in the US extended its agreement with the company and expanded the scope by adding its AI-powered hypertension offering.
