Sector Update: Health Care Stocks Mixed Near Close; Biodel Sinks on $15-Mln Stock Sale Pact with Institutional Investor


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Healthcare stocks were narrowly mixed in late trade with the NYSE Healthcare Sector Index declining less than 0.1% while shares of healthcare companies in the S&P 500 were ahead about 0.1% as a group.

In company news, shares of Biodel Inc. ( BIOD ) fell Monday after the specialty drug-maker today disclosed a purchase agreement with an institutional investor for as much as $15 million of its stock.

Under the terms of the purchase agreement, Lincoln Park Capital LLC agreed to buy up to $15 million of BIOD stock - equal to around 7.3 million shares at Friday's closing price of $2.06 a share - over the next three years in groups of between 150,000 to 250,000 shares at time of BIOD's choosing.

The company issued 95,000 shares to Lincoln Park Capital when the deal was finalized, according to securities documents filed today. BIOD expects to use proceeds from upcoming stock sales to fund its auto-reconstitution glucagon rescue program through the filing of a New Drug Application with the U.S. Food and Drug Administration.

BIOD shares were down nearly 4% in late trade at $1.98 apiece, just 2 cents off its session low. The stock has traded within a 52-week range of $1.85 to $6.08 a share, falling 55% over the past 12 months.

In other sector news,

(+) CCM, Declares special dividend of $0.30 per share, payable Sept. 30 to shareholders of record on Aug. 8.

(-) ACRX, Receives Complete Response Letter from the FDA seeking additional information about its Zalviso pain-management system for post-operative patients. The company expects to resubmit its New Drug Application by the end of the year.

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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