Bruised in Market Decline Last Week, Healthcare Stocks Leading Wednesday's Broad-Based Rally

By
A A A

Top Healthcare Stocks

JNJ +0.69%

PFE +0.97%


ABT +0.05%

MRK +3.69%

AMGN +1.64%

Healthcare stocks extended their rebound Wednesday with the NYSE Healthcare Sector Index climbing 1.7% and shares of healthcare companies in the S&P 500 up 2.0% as a group just before the close.

In company news, Pacira Pharmaceuticals Inc. ( PCRX ) was holding on to a 9.9% gain just ahead of the closing bell Wednesday afternoon and the maker of a local anesthetic used to treat post-operative pain completing a public offering of 1.6 million shares priced at $64 each.

After paying underwriting discounts and other offering costs, PCRX will pocket about $96 million in net proceeds. The company did not say how it plans to use the new funding. Underwriters participating in the deal also received 30-day options to buy up to 240,000 additional shares to cover possible overallotments.

The company also announced a strategic partnership with DPx Holdings' Patheon unit to manufacture and package the company's Exparel injection at Patheon's facility in Swindon, UK. The deal is expected to add about $300 million of manufacturing capacity, almost doubling its current capacity of around $400 million from its plant in San Diego.

Under terms of the partnership, PCRX will oversee the design and purchase of manufacturing equipment to be installed at the new plant, with Pacira having responsibility for construction and validation of the facility, expected to be completed in two or three years.

Shares were up nearly 10% at $71.93 each, earlier climbing to a session high of $72.38 a share. The stock has a 52-week range of $24.70 to $83.41 a share, jumping over 148% in value during the past year.

In other sector news,

(+) APPY, Closes public offering of 8.34 mln shares of its common stock at $2.40 each, generating just over $20 mln in gross proceeds. Underwriters also received 30-day options to buy up to 1.25 mln more shares to cover overallotments.

(-) ISRG, Q1 revenue forecast of $465 mln trails Capital IQ consensus by $71.6 mln, or 13.3%. The company also announces a $67 mln pre-tax charge reflecting estimated costs of settling product liability claims.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: PCRX

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

Stocks

Referenced

Most Active by Volume

33,974,386
  • $17.98 ▲ 0.28%
20,763,901
  • $91.29 ▲ 2.06%
19,110,793
  • $7.26 ▼ 1.22%
18,528,869
    $8.33 unch
18,014,920
  • $4.19 ▼ 1.18%
16,448,919
  • $25.83 ▼ 0.19%
14,748,190
  • $7.60 ▼ 1.43%
14,144,383
  • $112.01 ▼ 0.47%
As of 12/24/2014, 02:12 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com