Healthcare stocks are narrowly lower, with the NYSE Healthcare
Sector Index slipping about 0.1% and shares of healthcare companies
in the S&P 500 declining about 0.1% as a group.
In company news, Health Management Associates (
) is ahead nearly 6% at $13.27 a share in early afternoon trade
after saying its board is recommending that shareholders vote in
favor of a $7.6-billion buyout proposal from Community Health
), accepting either $10.50 in cash or 0.06942 of a CYH share as
well as a Contingent Value Right - worth up to $1 per share - in
exchange for each share they now own.
CYH was also higher in early trade, rising 2.5% to $43.38 a
HMA also reported a Q3 loss of $0.01 per share, reversing a
$0.22-per-share profit during the same quarter last year and
missing the Capital IQ consensus call looking for a $0.15 per share
Revenue, before provisions for doubtful accounts, rose 0.6% year
over year to $1.67 billion, matching analyst expectations.
Looking forward, the owner and manager of hospitals and
ambulatory surgery centers said it is now expecting FY13 net
revenue, before provisions for doubtful accounts, of between $6.84
billion to $6.86 billion, trailing estimates by at least $40
million, or less than 0.6%. EPS is projected in a range of $0.48 to
$0.50, also lagging the analyst consensus by at least $0.10 per
In other sector news,
(+) SVA, (+5.3%) Chinese drug-maker earns $0.04 per share in Q3,
reversing year-ago net loss of $0.05 per share and topping analyst
estimates expecting a $0.02 per share loss. Sales increase 54.5%
year over year to $22.1 mln, topping consensus view by $4.08
(-) CHTP, (-6.9%) Prices offering of 6.66 mln shares at $3 each,
a 9% discount to Tuesday's closing price. Deal generated $20 mln in
gross proceeds, which will be used to seek regulatory approvals and
fund commercialization of its droxidopa drug candidate.
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