Healthcare Stocks Dropping Hard; NanoString Unspooled After Pricing $55 Mln Follow-On Offering
Top Healthcare Stocks
Healthcare stocks are steeply lower, with the NYSE Healthcare Sector Index plunging more than 1.7% while shares of healthcare companies in the S&P 500 dropped 1.8% as a group.
In company news, NanoString Technologies ( NSTG ) shares were lower Friday after the genetic testing company late Thursday priced a $55 million, follow-on offering of common stock at $18.50 apiece, or about 6.5% below the stock's closing price on Jan. 17 before the company earlier this week disclosed plans to sell more stock.
The company, which has developed tools that can extract genetic information from minute amounts of tissue, plans to use net proceeds from the offering to further commercialize its Prosigna prognostic assay for the gene signature for breast cancer, including establishing a dedicated oncology sales force.
It also wants to target a portion of the funds to expand the clinical uses the Prosigna system and enlarge the customer base among researchers in the life sciences for the company's nCounter analysis systems. It also may use funds to acquire or license complementary products and technologies, adding it does not have any deal in the works at this time.
Shares were down nearly 10% at $17.70 each in recent trade, after establishing a new intra-day low of $17.65 earlier this afternoon. The stock has a 52-week range of $7.01 to $20.79 a share and was up 95.6% through Thursday's close after pricing its June 26 initial public offering of stock at $10 a share.
In other sector news,
(+) BDSI, (+32.5%) Together with Endo Health Solutions Inc. ( ENDP ), announces positive top-line results from Phase III efficacy study of their BEMA buprenorphine to treat moderate to severe chronic pain in patients requiring around-the-clock opioid therapy for an extended period of time. ENDP was down 0.7%.
(-) KIPS , (-14.1%) Prices underwritten public offering of 5.525 mln shares of its common stock at $0.70 each, generating $3.675 mln gross proceeds. Net proceeds are slated for development, clinical trials and seeking regulatory approval for the company's eSVS Mesh in the U.S. and abroad.