Health care stocks declined Thursday afternoon, with the NYSE Health Care Index and the State Street Health Care Select Sector SPDR ETF (XLV) each falling about 1.3%.

The iShares Biotechnology ETF (IBB) dropped 2.2%.

In corporate news, Eli Lilly's (LLY) Japanese subsidiary is expected to invest 20 billion yen ($126 million) at its factory in Kobe to bolster capacity for the company's existing drugs and support production of new diabetes and obesity medicines, Nikkei Asia said Thursday. Lilly shares were down 2.2%.

Viatris' (VTRS) Mylan unit withdrew all its claims disputing Novo Nordisk's (NVO) assertions that Mylan's generic semaglutide medication infringes the patent covering Wegovy, according to federal court filings. Viatris fell 1.2%, and Novo shed 1.8%.

Abivax (ABVX) denied an earlier report in La Lettre stating that the company granted AstraZeneca (AZN) exclusive access to confidential information until March 23 with a view to formalizing an offer, Bloomberg reported, citing an emailed statement from the company's head of investor relations. Abivax shares rose 4.3%, and AstraZeneca was shedding 0.9%.