Healthcare Stocks End Strong; Analyst Sees Payoff Ahead for St. Jude Investment in Device Startup

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Top Healthcare Stocks

JNJ +0.66%

PFE +0.66%

ABT +1.10%

MRK -0.39%

AMGN +1.50%

Healthcare stocks are mostly higher with the NYSE Healthcare Sector Index advancing 0.6% while shares of healthcare companies in the S&P 500 are now up 1.1% as a group.

In company news, St. Jude Medical Inc. ( STJ ) is up 3.1% at $56.52 a share, earlier climbing to a new 52-week high of $57.17 after the U.S. Food and Drug Administration recently signaled it may be close to approving a heart-failure detection device developed by a medical-device startup.

STJ stands first in line to buy privately held CardioMEMS, already owning a 19% stake in the company and can purchase full control of the firm and its Champion implantable heart monitor for $375 million. CardioMEMs is slated to meet again with the FDA's Circulatory Systems Device panel next Wednesday, prompting a positive research note today from Leerink Swan analyst Danielle Antalffy.

The analyst said recent documents released by the agency ahead of the Oct. 9 meeting acknowledged its effectiveness, according to MarketWatch and other media sources. The advisory panel two years turned down the company's 401k request but Antalffy is now giving CardioMEMS a 90% chance at winning a recommendation this time around.

In other sector news,

(+) DSCO, 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, 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 The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: STJ

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