Healthcare Stocks Broadly Higher; Echo Therapeutics Cans CEO, Fires Third of Workforce


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Top Healthcare Stocks

JNJ +0.72%

PFE +0.68%

ABT +0.99%

MRK -0.52%

AMGN +1.93%

Healthcare stocks are mostly higher, with the NYSE Healthcare Sector Index advancing 0.4% while shares of healthcare companies in the S&P 500 are up 1.1% as a group.

In company news, Echo Therapeutics ( ECTE ) is down 3% at $2.59 a share, just 4 cents off its intra-day low after late Thursday disclosing CEO Patrick Mooney was fired, effective Sept. 28, and is being replaced on an interim basis by board executive chairman Robert Dorman.

The medical device firm also said in a regulatory filing on Thursday it has laid off 33% of its workforce - equal to around about 15 employees - and is expecting to record around $91,000 in severance costs during Q3. No other expenses are expected connected to the downsizing.

In a move likely connected to its cost-cutting efforts, ECTE said Dorman's salary also was cut roughly 36% from $2,500 per day to $8,000 weekly.

In other sector news,

(+) DSCO, (+41.7%) FDA agrees to the company's updated product specifications for Surfaxin intratracheal suspension and approves it for the prevention of respiratory distress syndrome in premature infants.

(-) LCI, (-12.5%) Proposes underwritten public offering of new shares by the generic drug-maker as well as shares now held by selected shareholders. The number of shares to be offered and by whom has not yet been disclosed.

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

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

This article appears in: Investing Commodities
Referenced Stocks: ECTE

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