Health care stocks edged higher Tuesday afternoon, with the NYSE Health Care Index and the Health Care Select Sector SPDR Fund (XLV) each increasing about 0.1%.

The iShares Biotechnology ETF (IBB) rose 0.2%.

In corporate news, Humana (HUM) lost its bid to overturn cuts to Medicare Advantage bonus payments as a Texas judge ruled for the US government and upheld a downgrade to quality star ratings that influence plan reimbursements, Bloomberg Law reported. Humana shares fell 3.6%.

Johnson & Johnson (JNJ) raised its full-year sales guidance on Tuesday following stronger-than-expected Q3 results, while the healthcare products conglomerate said it plans to spin off its orthopedics business. Its shares were down 0.6%.

Shah Capital has urged the board of Novavax (NVAX) to pursue a sale of the company, citing persistent underperformance, continued slipups on the rollout of its COVID-19 vaccine and timid and ineffective marketing. Novavax shares climbed 2.7%.

BioCryst Pharmaceuticals (BCRX) has agreed to buy Astria Therapeutics (ATXS) in a deal valued at about $700 million, the firms said. Astria shares surged 38%, and BioCryst fell 11%.