Sector Update: Healthcare; Catamaran Reports Earnings, ProMetic Secures $20 Mln Loan from Thomvest

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Healthcare stocks were generally lower in afternoon trading, with the S&P/TSX Healthcare index down 0.7%.

Catamaran (CCT.TO): -1.4%

ProMetic Life Sciences (PLI.TO): +4.9%

Valeant Pharmaceuticals (VRX.TO): -0.1%

Tekmira Pharmaceuticals (TKM.TO): +4.7%

Merus Labs (MSL.TO): -4.9%

In corporate news, Catamaran Friday reported better-than-expected results for Q2 ended June 30, prompting the dual-listed provider of pharmacy benefit management services to update its full-year 2014 financial guidance.

Net income attributable to shareholders was US$71.4 million, or US$0.34 per diluted share, compared to US$63.4 million, or US$0.31 per diluted share, in the same period last year. Net earnings on an adjusted basis came in at US$111.1 million, or US$0.54 per diluted share, up slightly from adjusted earnings of US$100.6 million, or US$0.49 per diluted share, and ahead of the Capital IQ consensus of US$0.51.

Revenue increased 58% to $5.4 billion during the period, as a result of new customer implementations and additional income generated following Restat acquisition. Analysts were expecting US$5 billion.

Following "strong" quarterly results, the company is updating its full-year 2014 guidance. It now sees adjusted diluted EPS in the range of US$2.12 to US$2.22 from the prior range of US$2.10 to US$2.22. Revenues are now estimated to be US$20.5 to US$21.0 billion versus the previous guidance of US$20 to US$21 billion. And GAAP diluted EPS is now expected to be US$1.40 to US$1.50 from US$$1.38 to US$1.50 previously.

Elsewhere, ProMetic Life Sciences has secured a follow-on investment from Thomvest Seed Capital, consisting of a $20 million loan, in exchange for 16.7 million warrants in the bio-pharmaceutical company's shares. The loan is secured by the company's assets, excluding its patent portfolio.

Part of the net proceeds from the investment will be used for the development and manufacture of both additional and existing plasma-derived orphan drugs, the advancement of the ongoing PBI-4050 clinical program as well as the repayment of secured debt provided by certain shareholders.



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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