Sector Update: Health Care Stocks Extend Afternoon Retreat

Health care stocks added slightly to their midday slides this afternoon, with the NYSE Health Care Index and the SPDR Health Care Select Sector ETF (XLV) both dropping 0.6%.

The Nasdaq Biotechnology index also was sinking 2.2%.

In company news, Liminal BioSciences (LMNL) dropped almost 19% after overnight saying it was discontinuing development of its fezagepras drug candidate after an early-stage trial showed the prospective hyperammonemia treatment was significantly less effective removing excess nitrogen from the body compared with sodium phenylbutyrate . The biopharmaceuticals company said the decision allows it to concentrate resources for its GPR84 and OXER1 product candidates to treat inflammatory, metabolic and fibrotic conditions.

Tandem Diabetes Care (TNDM) slipped 1.7% after the medical device company announced its purchase of infusion set developer Capillary Biomedical. Financial terms were not disclosed.

To the upside, Hanger (HNGR) gained 25% after the orthotic and prosthetic services company agreed to a $1.25 billion takeover proposal from Patient Square Capital, with the hedge fund offering $18.75 in cash for each Hanger share, representing a 27% premium over Thursday’s closing price.

Tenet Healthcare (THC) rose 6.4% after the hospitals operator late Thursday reported non-GAAP Q2 net income of $1.50 per share, down from $1.59 per share during the same quarter last year but still topping the Capital IQ consensus looking for a $0.79 per share adjusted profit.

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