Healthcare stocks are lower with the NYSE Healthcare Sector
Index retreating about 0.4% and shares of healthcare companies in
the S&P 500 are down 0.3% as a group.
In company news, Transdermal medical device company Echo
) is up 10% at $2.46 a share after its largest shareholder,
Platinum-Montaur Life Sciences LLC, sent a letter to the company's
board of directors urging it to "stop the destruction of
The letter detailed a multi-point plan the New York-based
investor group believes would return the market value of the
company's stock. ECTE's share price has declined over 95% during
the past two years.
Among Platinum-Montaur's proposals would be removing several
sitting directors and replacing them with "professionals who bring
key industry experience and informed investor community insight."
It also would replace ECTE chief executive "who is not tainted by
service on the current underperforming board."
Other proposals include hiring a consulting firm to help the
board establish and implement a new strategic vision as well as an
equity offering priced at a premium to ECTE's current share price
in order to halt dilution of its market value.
Platinum-Montaur currently owns around 20% of ECTE's common
In other sector news,
(+) MGCD, Climbs to new 52-week high after Q3 earnings top
analyst consensus by $0.10 per share. Revenue rises 15% year over
year, also beating Street view.
(-) KOOL, Posts wider fiscal Q4 net loss compared to last year
while revenue for medical device manufacturer declines 8.9% year
over year to just $4.1 million.
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