Health care stocks retreated Wednesday, with the NYSE Health Care Index dropping over 0.8% while shares of health care companies in the S&P 500 were down nearly 1.0% as a group.
In company news, American depository shares of Shire plc (SHPG) declined Wednesday after the U.S. Department of Justice today said the company will pay $350 million to settle accusations the company through its former Advanced BioHealing unit used kickbacks and other unlawful methods to drive up sales of its Dermagraft treatment for diabetic foot ulcers.
The company flagged the potential $350 million agreement in an Aug. 2, 2016, regulatory filing, saying the settlement had yet to be finalized. Shire acquired Advanced BioHealing in 2011, later selling it in 2014.
“The settlement resolves allegations that Dermagraft salespersons unlawfully induced clinics and physicians with lavish dinners, drinks, entertainment and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits and rebates, to induce the use of Dermagraft,” the federal agency said in a statement today.