Healthcare Stocks Moderately Lower; Echo Therapeutics Posts Double-Digit Gain After Shareholder Presses For Change

By
A A A
Share |

Top Healthcare Stocks

JNJ -0.42%

PFE +0.48%

ABT -1.10%

MRK +0.44%

AMGN +0.14%

Healthcare stocks are lower with the NYSE Healthcare Sector Index retreating about 0.4% and shares of healthcare companies in the S&P 500 are down 0.3% as a group.

In company news, Transdermal medical device company Echo Therapeutics ( ECTE ) is up 10% at $2.46 a share after its largest shareholder, Platinum-Montaur Life Sciences LLC, sent a letter to the company's board of directors urging it to "stop the destruction of shareholder value."

The letter detailed a multi-point plan the New York-based investor group believes would return the market value of the company's stock. ECTE's share price has declined over 95% during the past two years.

Among Platinum-Montaur's proposals would be removing several sitting directors and replacing them with "professionals who bring key industry experience and informed investor community insight." It also would replace ECTE chief executive "who is not tainted by service on the current underperforming board."

Other proposals include hiring a consulting firm to help the board establish and implement a new strategic vision as well as an equity offering priced at a premium to ECTE's current share price in order to halt dilution of its market value.

Platinum-Montaur currently owns around 20% of ECTE's common stock.

In other sector news,

(+) MGCD, Climbs to new 52-week high after Q3 earnings top analyst consensus by $0.10 per share. Revenue rises 15% year over year, also beating Street view.

(-) KOOL, Posts wider fiscal Q4 net loss compared to last year while revenue for medical device manufacturer declines 8.9% year over year to just $4.1 million.



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.

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


This article appears in: Investing , Commodities

Referenced Stocks: ECTE

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

Stocks

Referenced

100%

Most Active by Volume

62,362,260
  • $16.2295 ▲ 0.62%
50,164,277
  • $59.629 ▼ 0.15%
46,087,550
  • $26.716 ▲ 2.28%
33,171,615
  • $86.51 ▲ 0.38%
29,743,833
  • $23.16 ▲ 0.56%
28,301,743
  • $23.80 ▲ 5.87%
23,094,646
  • $40.10 ▼ 0.74%
22,122,748
  • $9.19 ▼ 1.29%
As of 4/17/2014, 01:52 PM