Healthcare Stocks Still Slipping; Synergetics Slumps After Disclosing Plans to Shutter Philly-Area Plant

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Top Healthcare Stocks

JNJ -0.61%

PFE +0.10%

ABT +0.12%

MRK -0.62%

AMGN -1.57%

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 ( SURG ) 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 of 2014.

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 proceeds.



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.

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This article appears in: Investing , Commodities

Referenced Stocks: SURG

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