Top Healthcare Stocks
Healthcare stocks are moderately lower, with the NYSE Healthcare
Sector Index declining 0.4% and shares of healthcare companies in
the S&P 500 off nearly 0.5% as a group.
In company news, surgical-device maker Synergetics USA (
) is down nearly 8% at $4.60 a share, paring a portion of its
earlier losses after announcing plans to close its manufacturing
facility in King of Prussia, Penn., and consolidate those
operations into its existing facility in O'Fallon, Mo., by the end
The King of Prussia facility manufactures bipolar
electrosurgical generators, including the neurosurgical,
pain-control and related irrigation units, representing about 11%
of FY13 revenue. It currently employs 24 workers.
Closing activities are expected to cost around $900,000 over the
next 14 months while reducing operating expenses over $1 million
each year beginning in FY16.
SURG also last night announced GAAP earnings of $0.06 per share,
down from a $0.08 profit in the year-ago quarter and matching the
Capital IQ consensus. Revenue rose 5.9% year over year to $17.9
million, beating expectations by nearly $900,000.
In other sector news,
(+) DCTH, (+96.8%) FDA grants orphan drug designation for the
company's melphalan hydrochloride medication to treat a form of
liver cancer. Melphalan for use with the Delcath Hepatic Delivery
System currently is not approved in the U.S.
(-) STEM, (-14.0%) Prices public offering of 11.7 mln shares of
common stock at $1.45 each, generating $16.2 mln in gross
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