01:53 PM EDT, 05/29/2024 (MT Newswires) -- Health care stocks were slipping Wednesday afternoon, with the NYSE Health Care Index falling 0.8% and the Health Care Select Sector SPDR Fund (XLV) down 0.9%.

The iShares Biotechnology ETF (IBB) dropped 1.5%.

In corporate news, Merck ( MRK ) has agreed to buy privately held biotech company Eyebiotech for a $1.3 billion upfront payment and up to $1.7 billion in future milestone payments. Merck ( MRK ) shares eased 0.1%.

Health-insurance stocks fell in Wednesday trading after UnitedHealth ( UNH ) said it sees a "disturbance" coming in the company's Medicaid business, Bloomberg reported. UnitedHealth ( UNH ) shares fell 4.4%. Medicaid-focused Centene ( CNC ) dropped 3.4%, Molina Healthcare ( MOH ) slumped 5.4%, Humana (HUM) declined 3%, and Elevance Health ( ELV ) lost 3.1%.

Mira Pharmaceuticals ( MIRA ) shares jumped 7.5% after it said Wednesday that the US Drug Enforcement Administration has determined that the company's Mira-55 pharmaceutical marijuana analog is not a controlled substance nor a listed chemical under the Controlled Substance Act.