Healthcare Shares Little Changed; Cancer Genetics Surges After Aegis Begins Coverage with Buy Rating

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Top Healthcare Stocks

JNJ -0.37%

PFE +1.33%

ABT -1.40%

MRK +0.20%

AMGN +0.57%

Healthcare stocks are narrowly mixed, with the NYSE Healthcare Sector Index falling about 0.1% while shares of healthcare companies in the S&P 500 are rising 0.1% as a group.

In company news, Cancer Genetics ( CGIX ) is up nearly 40% this afternoon at $22.70 a share, earlier climbing to a new 52-week high of $21.25 after the early-stage diagnostics late Thursday picked up analyst coverage at Aegis Capital with a Buy rating and a $25 price target.

CGIX also had a morning presentation Friday at the Aegis Healthcare Conference in Las Vegas.

In his new research note, Aegis analyst Raghuram Selvaraju cited the broad pipeline of diagnostic tests at CGIX that are either close to commercialization or still under development. Selvaraju believes those tests have the potential to generate high-margin revenue from partnerships with biopharmaceutical firms seeking theranostic tools.

He also said CGIX could become cash flow-positive as soon as early 2015, writing margins "are likely to improve significantly going forward as Cancer Genetics expands sales of proprietary tests."

In other sector news,

(+) HALO, (+8.5%) Announces commercial launch of Herceptin SC in Europe, triggering $10 mln milestone payment from Roche ( RHHBY ).

(-) NKTR, (-21.2%) Said its NKTR-181 drug candidate did not meet primary endpoint in Phase II testing in patients with chronic knee pain from osteoarthritis, with only 3% of the patients achieving meaningful pain relief.



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.

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This article appears in: Investing , Commodities

Referenced Stocks: CGIX , RHHBY

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