Sector Update: Healthcare Stocks Decline Late Afternoon

03:56 PM EDT, 08/31/2026 (MT Newswires) -- Healthcare stocks were lower late Monday afternoon, with the NYSE Healthcare Index decreasing 0.5% and the State Street Health Care Select Sector SPDR ETF (XLV) down 0.3%. The iShares Biotechnology ETF (IBB) shed 0.4%. In corporate news, Eli Lilly (LLY) has agreed to buy Merida Biosciences for up to $2.875 billion in cash, as it seeks to expand its portfolio of autoimmune and allergic disease therapies, the companies said Monday. Lilly shares were down 1.1%. Takeda Pharmaceutical (TAK), Bayer, CSL, and other mid-size biotech firms are set to announce new pricing deals with the White House on Monday, the Financial Times reported, citing two sources familiar with the matter. The deals will be similar to those finalized by large pharmaceutical companies in which they agreed to lower prices in exchange for tariff relief, according to the report. Takeda shares were down 0.1%. Exelixis (EXEL) said Monday that the US Court of Appeals for the Federal Circuit has affirmed a key portion of the 2024 judgment of the US District Court for the District of Delaware in its favor in the lawsuit Exelixis vs. MSN Laboratories. Exelixis were up 0.4%. Alvotech (ALVO) shares rose past 5% after it said Monday a biologics license application for AVT80 as a proposed interchangeable biosimilar to Entyvio has been accepted for review by the US Food and Drug Administration.