Healthcare Stocks Slightly Higher; Given Imaging Soars on $860-Mln Buyout Offer

By Staff,

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Healthcare stocks are holding narrow gains, with the NYSE Healthcare Sector Index gaining about 0.1% and shares of healthcare companies in the S&P 500 adding about 0.2% as a group.

In company news, Given Imaging ( GIVN ) is up more than 26% at $29.94 a share, just 2 cents off its new 52-week high after accepting an $860-million buyout offer from Covidien ( COV ).

GIVN shareholders will receive $30 in cash for each share they now own. COV expects to fund transaction with cash on hand and will report revenue generated by GIVN within its Medical Devices business segment - adding an expected $40 million to $50 million per quarter to the segment results.

COV also said it expects the deal will immediately add to its earnings as soon as it closes, providing the company with scale and scope in the gastrointestinal market. COV shares are up about 0.5%.

In other sector news,

(+) GILD, (+1.0%) FDA approves the company's sofosbuvir, an once-daily oral medication to be marketed as Sovaldi, to treat chronic hepatitis C. The Wholesaler Acquisition Cost of a 28-tablet bottle of Sovaldi in the United States is $28,000.

(-) PGNX, (-2.2%) Late Friday, released Phase I data for its TC-99-M-MIP-1404 SPECT/CT imaging agent, saying it correctly identified eight out of eight patients with prostate cancer in a poster presentation to the Society for Urologic Oncology in Rockville, Md.

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: COV , GIVN

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