Health-care companies fell sharply as traders rotated into more interest-rate sensitive areas.

Financially distressed drugmaker Mallinckrodt is in discussions with a compensation trust for opioid victims as it seeks to reduce the amount of settlement payments by as much as $1 billion, The Wall Street Journal reported.

Makers of drugs addressing excess fat in the liver, including Akero Therapeutics, Madrigal Pharmaceuticals, Viking Therapeutics and 89bio, sold off last week after clinical-trial data hinted Eli Lilly's obesity drug candidate could also reduce liver fat.

That may have been an oversimplification of the trial data implications, said analysts at brokerage Evercore ISI.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

07-07-23 1706ET