Healthcare Stocks Mostly Lower Near Bell; OncoMed Soars Following Collaboration Pact with Celgene


Top Healthcare Stocks

JNJ -0.47%

PFE -2.07%

ABT -1.48%

MRK -1.12%

AMGN -1.10%

Healthcare stocks are sharply lower with the NYSE Healthcare Sector Index falling about 0.7% and shares of healthcare companies in the S&P 500 sliding 0.9% as a group.

In company news, OncoMed Pharmaceuticals Inc. ( OMED ) is set to nearly double in price today, with shares rising over 93% to $27.05 each after inking a deal with Celgene Corp ( CELG ) pairing the biopharmaceutical companies to jointly develop and commercialize up to six anti-cancer stem-cell product candidates from OMED's biologics pipeline.

Under the agreement, OMED will receive a $155-million, upfront payment with CELG also purchasing just over 1.47 million OMED shares at $15.14 apiece - and 8.1% premium to OMED's closing price yesterday. The $22.3 million investment will provide CELG with a 5% stake in its partner company.

The agreement also includes option-exercise and milestone payments, paid on a per-program basis. For demcizumab, one of OMED's more advanced drug candidates to treat pancreatic cancer, these payments could eventually total $790 million, the companies said.

CELG is down nearly 2% in late trade at $160.08 a share.

In other sector news,

(+) CNAT, U.S. Food and Drug Administration grants orphan drug status for the company's Emricasan drug candidate - now in Phase IIb testing - to stymie recurrent fibrosis and cirrhosis in liver-transplant recipients.

(-) THO, Q1 earnings of $0.68 per share, ex items, trail analyst expectations by $0.02. Revenue rises 5.1% year over year to $800 mln, roughly matching Street view looking for $802.6 mln in quarterly sales.

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 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: CELG , OMED

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