02:00 PM EST, 12/23/2024 (MT Newswires) -- Health care stocks were higher Monday afternoon, with the NYSE Health Care Index rising 0.8% and the Health Care Select Sector SPDR Fund (XLV) up 0.6%.

The iShares Biotechnology ETF (IBB) added 0.3%.

In corporate news, Ikena Oncology ( IKNA ) and clinical-stage biotech company Inmagene Biopharmaceuticals said Monday they have agreed to merge, in a deal that will result in the latter owning about 43.5% of the combined company. Ikena shares surged 13%.

XBiotech ( XBIT ) shares sank past 27% after it said it's pausing its rheumatology clinical program due to irregularities in a phase 2 study of its candidate drug Natrunix for rheumatoid arthritis.

Spectral AI (MDAI) shares popped 10%. The company said Monday it received a letter from Nasdaq on Friday confirming that it has regained compliance with the exchange's listing rules.