Health care stocks rose late Tuesday afternoon, with the NYSE Health Care Index adding 0.4% and the State Street Health Care Select Sector SPDR ETF (XLV) up 0.2%.

The iShares Biotechnology ETF (IBB) shed 0.4%.

In corporate news, CVS Health (CVS) has reached a proposed settlement with the Federal Trade Commission over insulin pricing, Reuters reported, citing the company. The company's pharmacy benefit management unit, Caremark, has focused on lowering prescription drug costs, CVS said, adding that the settlement is expected to be finalized in the coming weeks, with final terms still pending, the report said. CVS shares rose 2.5%.

ImmunityBio (IBRX) shares dropped 21% after the US Food and Drug Administration issued a warning letter citing "misleading" promotional materials for its bladder cancer drug Anktiva.

Gilead Sciences (GILD) has agreed to acquire autoimmune disease therapy developer Ouro Medicines for up to $2.18 billion, while the biopharmaceutical firm is in collaboration talks with Galapagos (GLPG) on the assets from the proposed deal. Gilead shares were up 0.2%, and Galapagos fell past 6%.

Karyopharm Therapeutics (KPTI) shares slumped 20% after the company said it agreed with RA Capital Management to raise about $30 million via a private placement, with potential additional proceeds of $44 million if accompanying warrants are exercised.