Sector Update: Health Care Stocks Falling; Arena Pharma Reverses Early Advance Despite Surprise Q2 Profit

By Staff,

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Top Healthcare Stocks

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Healthcare stocks were moderately lower Friday with the NYSE Healthcare Sector Index slipping about 0.3% and shares of healthcare companies in the S&P 500 off about 0.5% as a group.

In company news, Arena Pharmaceuticals was lower Friday, giving up early gains that followed the drug-maker today reporting a surprise Q2 profit despite a big year-over-year drop in quarterly revenue although those results also topped Wall Street expectations.

Net income was $7.48 million, or $0.03 per share, down from a $40.1 million profit during the year-ago period but easily beating analyst estimates looking for an $0.11 per share net loss.

Revenue declined 81.4% year over year to $12.8 million but still exceeded the Capital IQ consensus by around $3.63 million. Net sales of the company's Belviq anti-obesity drug reached $3.5 million, or 31.5% of the $9.9 million in overall sales of the drug by the U.S. affiliate of Eisai Co Ltd. ARNA also received around $400,000 from redemptions of a 15-day free trial voucher for Belviq.

ARNA shares were nearly 5% at $4.40 apiece in mid-day trade, just 5 cents above its session low and retreating from an early 4.5% advance to $4.84 a share. The stock has traded in a 52-week range of $4.05 to $7.97 a share, declining slightly less than 35% over the past 12 months.

In other sector news,

(+) TNDM, (+17.1%) Q2 net loss of $0.83 per share was $0.06 smaller than expected. Revenue climbs 85.5% year over year to $10.3 mln, roughly in-line with $10.4 mln consensus. Guides FY14 revenue in-line with $546.76 mln Street view.

(-) BONE, (-29.4%) Prices offering of 1.14 mln shares at $5.70 each, a 19.9% discount to Thursday's closing price. The deal also included warrants to buy up to 571,500 additional shares at $7.12 apiece and generated $5.8 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 Nasdaq, Inc.

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

This article appears in: Investing Commodities
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