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Health Care Sector Update for 12/06/2017: VTVT,DVA,HQY


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Health care stocks pared much of their prior retreat this afternoon, with the NYSE Health Care Index declining about 0.1% while shares of health care companies in the S&P 500 were down slightly less than 0.1% as a group.

In company news, vTv Therapeutics ( VTVT ) surged Wednesday, rising over 22% to a session high of $4.76 a share, after the biotech company's largest institutional investor yesterday agreed to add to its stake, commiting to buy up to $10 million of vTV Therapeutics' Class A common stock over the next year.

The agreement with the MacAndrews & Forbes Group LLC calls on the investment manager wholly owned by billionaire investor Ron Perelman to pay 4.38 per share, which is equal to the stock's volume-weighted price over the previous five days and translates into a total of 2.28 million shares, according to regulatory documents filed earlier today.

The investment fund can divide its stock purchases over three separate transactions of any size until reaching the $10 million limit. It also will receive seven-year warrants exercisable at $5.04 per share, representing a 15% premium over the initial purchase price.

MacAndrews & Forbes and its affiliates already own more than 78% of the company's voting stock, holding nearly 23.1 million Class B shares and almost 2.57 million Class A shares. It also has three employees now sitting on the company's board of directors.

In other sector news,

(+) DVA, Agrees to sell its Davita Medical Group subsidiary to United HealthGroup's Optum unit for $4.9 mln in cash, which will be used for stock buybacks, debt repayment and general corporate purposes.

(-) HQY, Narrows FY18 EPS forecast to $0.64 to $0.66, lagging Capital IQ consensus by at least $0.02 per share. Q3 EPS rises to $0.17, beating analyst consensus by $0.01 per share. Revenue climbs 31% to $56.8 mln, also topping the $55.4 mln Street mean. Chardan raises price target by $4 to $62 a share, maintains Buy rating.

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

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This article appears in: Investing , US Markets
Referenced Symbols: VTVT , DVA , HQY


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