Sector Update: Health Care Stocks Unable to Pare All of Their Earlier Decline by Friday Close

Health care stocks were moderately lower this afternoon, with the NYSE Health Care Index falling 0.4% and the SPDR Health Care Select Sector ETF XLV down 0.2%.

The Nasdaq Biotechnology index was rising 0.9%, reversing a midday slide.

In company news, Gelesis GGLS was more than 10% lower late on the first day on the NYSE Stock Exchange after the former PureTech Health PRTC subsidiary completed its merger with Capstar Special Purpose Acquisition (CPSR). The deal generated around $105 million in gross proceeds for the new company, which is planning to use those funds for the upcoming launch of its Plenity weight-management system. PureTech shares were little changed in late Friday trade.

Acutus Medical AFIB dropped almost 16% after Canaccord Genuity cut its stock rating for the medical device company to hold from buy and slashed its price target for Acutus shares by $7 to $3.

Among gainers, Corvus Pharmaceuticals CRVS rose 1.6% after the biopharmaceutical company late Thursday said Chinese partner Angel Pharmaceuticals doses the first patient in a phase I/Ib trial of its CPI-818 drug candidate in patients with a variety of relapsed/refractory T-cell lymphomas.

Babylon Holdings BBBLN was falling 4.8%, reversing an early 3.6% gain that followed the digital health care company Friday raising its FY22 revenue forecast to a new range of $900 million to $1 billion, reflecting more than $80 million in revenue during January and the company signing new care agreements expected to add around 88,000 new members. Babylon had been projecting around $710 million in revenue this year while the Street was at $756.7 million, according to Capital IQ.