Healthcare Stocks Inching Higher; MiMedx Recouping Portion of Wednesday's Steep Losses, Rising 22%


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Healthcare stocks are slightly higher this afternoon, with the NYSE Healthcare Sector Index rising less than 0.1% while shares of healthcare companies in the S&P 500 are up about 0.1% as a group.

In company news, MiMedx Group Inc. ( MDXG ) is up 22.6% at $4.72 a share, bouncing back from losses as steep as 50% late Wednesday after the company confirmed it received an "Untitled Letter" from the U.S. Food and Drug Administration questioning whether its Amnion/Chorion Injectable products are eligible to be sold in the U.S.

The company said it expressly disagrees with the agency's position in the letter, adding it is talking to FDA officials in a bid to resolve the matter as quickly as possible. As explained on the FDA's website, an untitled letter "cites violations that do not meet the threshold of regulatory significance for a Warning Letter."

The company also reiterated its expected revenue for FY13 of $54 million to $60 million and its goal for FY14 revenue of $90 million to $110 million. Revenue from the company's injectable are projected to make up about 15% of FY14 revenues, it said.

The company's guidance is in-line with the consensus estimates forecasting $58.76 million for FY13 and $99.77 million for FY14, according to Capital IQ.

In other sector news,

(+) POZN, (+9.9%) Inks pact with Sanofi ( SNY ) to commercialize its investigational tablets combining aspirin and omeprazole to treat secondary heart disease symptoms, with POZN receiving $15 mln in upfront payments.

(-) AGEN, (-24.0%) Said a potential melanoma treatment it is developing with GlaxoSmithKline ( GSK ) failed to meet its primary endpoint of extending patient survival during Phase II testing.

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: GSK , MDXG , SNY

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