Healthcare Sector Holding Moderate Gains; eHealth Surging After New Pact With U.S. Government

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Healthcare stocks are higher, with the NYSE Healthcare Sector Index climbing 0.5% and shares of healthcare companies in the S&P 500 rising 0.3% as a group.

In company news, eHealth ( EHTH ) is up nearly 29% at $30.72 a share, earlier climbing to a new 52-week high of $31.34 after striking a deal with the U.S. government on key requirements allowing the company to enroll residents in 36 states who are eligible for a tax subsidy in qualified health insurance plans under the Affordable Care Act.

EHTH through the deal gains access to the Federal electronic data hub, necessary for a determination of tax subsidy eligibility and the amount of a subsidy.

The company already has enrolled over 3 million individuals in coverage since it sold the first health insurance policy online in 1998. Of these, around 40% were uninsured before they came to EHTH.

In other sector news,

(+) BCRX, (+6.9%) Announces plans to sell up to $20 million in new stock, with proceeds to be used to fund clinical development of its BCX4161 drug candidate as well as work on other medications.

(-) NUVA, (-12.9%) Q2 adjusted earnings of $0.20 per share miss analyst projections by $0.03 worse than the Capital IQ Consensus Estimate of $0.23; revenues rose 7.3% year/year to $165.7 mln vs the $161.67 mln consensus.



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This article appears in: Investing , Commodities

Referenced Stocks: EHTH

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