Healthcare stocks are mostly lower with the NYSE Healthcare Sector Index declining about 0.3% and shares of healthcare companies in the S&P 500 also falling about 0.3% as a group.
In company news, CVS Caremark and Cardinal Health ( CAH ) are each higher today with the companies announcing the creation of the largest generic sourcing entity in the country.
Under terms of the deal, CVS will receive $25 million in quarterly payments from CAH, with the firms contributing their sourcing and supply chain expertise to the 50/50 joint venture and also committing to source generic drugs through it.
The companies today also announced a three-year extension through June 2019 of CAH's existing pharmaceutical distribution agreements with CVS.
CAH shares last traded up 3.5% higher at $66.51 while CVS was up 1.9% to $68.02 a share.
In other sector news,
(+) NURO, Signs Omron Healthcare China to be its exclusive distributor of NC-stat DPNCheck, the company's point-of-care test, for diabetes in China.
(-) DGX, Bank of America cuts its rating for the diagnostics-testing company to Underperform from buy while also reducing its price target for the stock by $9 to $55 a share.
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