Sector Update: Heatlh Care Stocks End Mixed; Iradimed Surges in Market Debut, Pricing Upsized IPO Above Expected Range


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Healthcare stocks were finishing mixed Wednesday with the NYSE Healthcare Sector Index rising 0.1% although shares of healthcare companies in the S&P 500 had declined around 0.3% as a group.

In company news, Iradimed Corp ( IRMD ) rallied Wednesday, with shares of the maker of non-magnetic infusion pumps rising in their first day of public trading after the company priced an upsized initial public offering of stock above its expected range.

The company sold 2.016 million shares - or 266,000 more than its original plan - at $6.25 apiece, topping the expected $5.00 to $6.00 price range by at least 4.1%. After underwriter discounts and other offering expenses, IRMD will pocket around $5.35 per share, or just under $10.8 million in net proceeds. The exercise of underwriter overallotments would boost the take to around $12.5 million.

It plans to use up to $2 million of the proceeds on sales and marketing efforts, with between $1 million to $1.5 million earmarked for research and development of existing and new products. Up to $1.5 million more will go for working capital, with any remaining funds set aside for potential acquisitions, although the company said in its final prospectus it does not have any potential deals in the works at this time.

IRMD shares were up more than 42% in late trade at $8.89 apiece, earlier climbing to a session high of $11.20 a share and a 79.2% gain following a $10 open.

In other sector news,

(+) HCA, Raises Q2 guidance, now expecting to report per-share earnings of around $1.07 on around $9.23 bln in revenue, up 9.2% over year-ago levels. The Street has been looking for EPS of $0.92 on $8.86 bln in revenue.

(-) BIOA, Prices $33.6 mln public offering of 2.8 million shares of its common stock at $12 each, a 15.5% discount to yesterday's closing price for the stock. Proceeds will be used for working capital and other general corporate purposes.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: IRMD

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