Healthcare stocks were higher Thursday afternoon, with the NYSE Healthcare Index rising 2% and the State Street Health Care Select Sector SPDR ETF (XLV) adding 2.1%.

The iShares Biotechnology ETF (IBB) advanced 1.6%.

In corporate news, AbbVie (ABBV) and other healthcare stocks were rising after the Trump administration reportedly proposed a new rule to curb hospital drug markups in Medicare. According to The Associated Press, the rule targets hospitals in the 340B program, which allows them to buy outpatient drugs at reduced prices for low-income patients but often bill insurers at higher rates and keep the difference. AbbVie rose 3.2%, Johnson & Johnson (JNJ) was up 2.9%, Bristol-Myers Squibb (BMY) gained 2.4%, and Merck (MRK) added 2.2%.

Ensign (ENSG) shares rose 1.7% after the company said it has purchased the real estate and operations of two skilled nursing facilities in Texas.

Exelixis (EXEL) offers balanced risk-reward ahead of several key catalysts, with its Zanzalintinib therapy well positioned for success in a non-clear cell renal cell carcinoma, or nccRCC, trial readout in the second half of 2026 that could lift the stock, UBS Securities said. The firm raised its price target on Exelixis to $52 from $43 and reiterated its neutral rating. Exelixis shares added 1.8%.