01:15 PM EDT, 06/20/2024 (MT Newswires) -- Community Health Systems ( CYH ) shares fell nearly 8% in recent Thursday trading after the company reported that Novant Health has decided to pull out of a deal to acquire Norman Regional Medical Center and Davis Regional Psychiatric Hospital in North Carolina.

"Novant has informed the company it intends to exercise its right to formally terminate the Purchase Agreement soon," Community Health ( CYH ) said.

On Tuesday, the US Fourth Circuit Court of Appeals issued a temporary injunction blocking the $320 million deal, pending final resolution of an appeal by the Federal Trade Commission, according to the firm.

"The injunction prevented completion of the transaction until the Court of Appeals decides whether to uphold or overturn a previous District Court decision that allowed the sale to proceed," Community Health ( CYH ) said.

The company said it is evaluating the current operations at the two hospitals.

Novant could not be reached for comment.

Price: 3.21, Change: -0.28, Percent Change: -7.90