Healthcare Stocks Plunge Late Tuesday Afternoon Amid Cybersecurity Worries

Healthcare stocks took a hit late Tuesday afternoon in New York. The NYSE Healthcare Index dropped by 2.5% and the State Street Health Care Select Sector SPDR ETF (XLV) fell 2.2%. The iShares Biotechnology ETF (IBB) declined by 1.9%.

Boston Scientific (BSX) revealed it couldn't meet its near-term financial outlooks due to a 'material impact' from a recent cybersecurity incident. Its shares plummeted by 5%. Novartis (NVS) suffered after a phase 3 trial assessing delpacibart etedesiran in people with myotonic dystrophy type 1 failed to meet its primary endpoint, leading to a decline of over 13%.

GlaxoSmithKline (GSK) raised $6.5 billion from a US high-grade debt sale to help refinance bridge funding for its $10.6 billion takeover of Nuvalent. GSK shares fell by 2.4%. Novo Nordisk (NVO) halted two additional trials of its experimental cardiovascular drug, ziltivekimab, after an independent committee found it unlikely they would produce different results from a previous failed study.

The company said patients will continue through to their 3-month follow-up as planned. The trials tested the drug in heart failure patients and were stopped early due to the low chance of success.