Healthcare stocks were higher in late trade with the NYSE
Healthcare Sector Index turning around earlier declines with a 0.5%
gain and shares of healthcare companies in the S&P 500 adding
1.1% as a group.
In company news, Medivation (
) shares shook off a mid-day slump and were trading higher shortly
before the closing bell Tuesday and the biotech company late
yesterday disclosing a legal challenge by the University of
California, Los Angeles, claiming the company hasn't paid the
proper royalties for products using UCLA-patented technology.
Specifically, the suit filed in California Superior Court
charges MDVN has failed to 10% of the operating profits the company
has received from Astellas Pharma Inc. through a 2009 collaboration
A second allegation accuses MDVN of breaching its fiduciary
duties to UCLA as a minority shareholder. Despite the disagreement
with the company, the UCLA complaint does not seek to scuttle the
exclusive licensing agreement between MDVN and the college.
MDVN shares retreated from early gains to brief trade underwater
around mid-day, only to rebound ahead of the closing bell, recently
fetching $57.80 each, up 3.6%. The stock has a 52-week range of
$44.51 to $88.20 a share, rising about 9% over the past 12
In other sector news,
(+) JNJ, Adjusted Q1 earnings of $1.54 per share beat the
Capital IQ consensus by $0.06. Revenue climbs 3.5% year over year
to $18.11 bln, also topping Street view by around $10 mln.
(-) TRXC, Prices underwritten offering of 12.5 mln shares of its
common stock at $4 each - a 53.4% discount to Monday's closing
price. Deal generates $46.2 mln in gross proceeds, which will be
used to commercialize its SurgiBot robotic surgery tool.
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