Healthcare stocks were narrowly mixed this afternoon with the
NYSE Healthcare Sector Index climbing about 0.1% and shares of
healthcare companies in the S&P 500 down about 0.1% as a
In company news, Biolase Inc. (
) jumped to its best share price in nearly two months Tuesday after
Federico Pignatelli stepped down as CEO and board chairman at the
dental-laser company, less than a week after the Delaware Supreme
Court upheld a lower court decision in a shareholder suit seeking
to end a board deadlock over his tenure.
Oracle Partners, a Greenwich, Conn., hedge fund that owns about
16.4% of BIOL stock, and Pignatelli have been fighting over board
composition and size, with a Court of Chancery judge late last
month siding with Oracle Partners' bid to place its nominee on a
six-member board. That decision was upheld last Thursday, June 12,
by the Delaware high court, effectively ending Pignatelli's efforts
to remain at the company helm.
Following Pignatelli's resignation, BIOL said new board member
Jeffrey Nugent agreed to serve as interim CEO while the company
looks for a permanent replacement. Nugent previously held several
executive positions at Johnson & Johnson (
), including leading the healthcare conglomerate's dental care
franchise as well as Worldwide President and CEO of its Neutrogena
skin care unit. He also was a past CEO at Revlon Inc (
Also today, the company said former Abbott Labs (
) executive Paul Clark was selected new board chairman.
BIOL shares recently were up nearly 23% at $2.31 apiece, earlier
climbing to a session high of $2.44 a share. The stock has a
52-week range of $1.15 to $4.52 a share, falling over 47% over the
past 12 months.
In other sector news,
(+) NVGN, (+10.5%) Announces pre-clinical drug, Trx-1, a success
in proof-of-concept studies confirming the potency of its
experimental ovarian cancer treatment, Trx-1, when delivered into
the peritoneal cavity.
(-) ACOR, (-6.4%) Planning $300 mln public offering of
convertible senior notes due 2021.
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