Sector Update: Health Care


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Healthcare stocks were narrowly mixed Friday with the NYSE Healthcare Sector Index rising about 0.1% and shares of healthcare companies in the S&P 500 off less than 0.1% as a group.

In company news, Nektar Therapeutics was ending Friday's session with a gain after the clinical-stage drug-maker narrowed its Q2 net loss compared to year-ago levels, beating analyst estimates for the three months ended June 30 while quarterly revenue also exceeded the analyst consensus.

Q2 net loss at the company was $32.6 million, or $0.26 per share, improving on a $42.7 million net loss during the year-ago period and beating the Capital IQ consensus by $0.10 per share.

Revenues fell 15.9% year over year to $28.5 million, easily beating the Street view by around $8.73 million.

The company also said last night it is looking forward to likely U.S. and EU regulatory approvals for its Movantik drug candidate to treat opioid-induced constipation during the second half of 2014. It also said Baxter International ( BAX ), its partner developing a potential hemophilia treatment, has completed dosing in Phase III testing of the drug and plans to file Biologics License Applications with the FDA before the end of the year.

NKTR shares was ahead nearly 12% in late trade at $11.81 each, just 2 cents off its session high. The stock has a 52-week range of $8.87 to $15.34 a share, slipping about 7.5% over the past 12-month span.

In other sector news,

(+) TNDM, 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, 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.

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This article appears in: Investing , Commodities

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