01:39 PM EDT, 09/25/2025 (MT Newswires) -- Health care stocks declined Thursday afternoon, with the NYSE Health Care Index falling 1.8% and the Health Care Select Sector SPDR Fund (XLV) dropping 1.7%.

The iShares Biotechnology ETF (IBB) shed 1.8%.

In corporate news, Harmony Biosciences' ( HRMY ) experimental Fragile X drug ZYN002 failed to meet its goals in a late-stage trial, erasing the opportunity of about $900 million in potential peak US sales, and closing off a path to diversify revenue beyond Wakix, its narcolepsy drug set to lose exclusivity in 2030, Deutsche Bank said Thursday. Deutsche cut Harmony's price target to $36 from $54 and reiterated a buy rating. Harmony shares were down 0.7%.

Philips (PHG) is in talks with US policymakers regarding investigations into imports of medical equipment, but doesn't expect any immediate impact from the probes, Reuters reported. Philips' shares were falling 3.1%.

Capricor Therapeutics ( CAPR ) shares jumped nearly 7% after it reported a regulatory update on its biologics license application for deramiocel, its investigational Duchenne muscular dystrophy therapy, following a recent Food and Drug Administration Type A meeting.