Sector Update: Healthcare Stocks Decline Friday Afternoon

01:51 PM EDT, 10/23/2026 (MT Newswires) -- Healthcare stocks were lower Friday afternoon, with the NYSE Healthcare Index dropping 1.2% and the State Street Health Care Select Sector SPDR ETF (XLV) falling 1%. The iShares Biotechnology ETF (IBB) decreased 0.5%. In corporate news, Johnson & Johnson's (JNJ) orthopedics business' proposed merger with Smith & Nephew (SNN) has collapsed over a disagreement on who would run the company, the Financial Times reported. Johnson & Johnson shares were down 1.6%, and Smith & Nephew shares were up 0.2%. Bristol-Myers Squibb (BMY) shares were falling 2.3% after it said Friday that a patient with highly active relapsing multiple sclerosis in a phase 1 trial assessing zolacabtagene autoleucel died from septic pneumonia after receiving high-dose cyclophosphamide. Lycia Therapeutics (LYCA) shares surged 44% in their Nasdaq debut on Friday. The company priced its initial public offering of 17.6 million shares at $18 apiece, and granted underwriters a 30-day option to buy up to an additional 2.6 million shares, according to a Thursday statement.