Sector Update: Healthcare Stocks Fall Late Afternoon

03:56 PM EDT, 10/23/2026 (MT Newswires) -- Healthcare stocks were lower late Friday afternoon, with the NYSE Healthcare Index dropping 1.3% and the State Street Health Care Select Sector SPDR ETF (XLV) falling 1.2%. The iShares Biotechnology ETF (IBB) decreased 0.8%. 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 1.4%, and Smith & Nephew was fractionally lower. Bristol-Myers Squibb (BMY) shares were falling 2% 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. Avalo Therapeutics (AVTX) shares fell past 6% after HC Wainwright downgraded the stock to neutral from buy. Aardvark Therapeutics (AARD) shares tumbled 63% after the company released on Friday exploratory efficacy data from its previously terminated phase 3 HERO and open-label extension trials.