Healthcare Stocks Scratching Out Gains; Merge Healthcare Slides After Saying Former Employee Falsified Records
Top Healthcare Stocks
Healthcare stocks are higher with the NYSE Healthcare Sector Index climbing 0.3% and shares of healthcare companies in the S&P 500 advancing 0.7% as a group.
In company news, Merge Healthcare ( MRGE ) fell on Wednesday after the healthcare data company reduced its non-GAAP subscription backlog totals over 25% from its prior statements, saying a former sales employee falsified customer contracts.
The company said the backlog for its eClinical business at the end of its September quarter was $41.2 million, down from a previously reported 56.4 million.
MRGE said the falsified sales data was discovered following an internal review. The company had not invoiced any of the customers or recognized any revenue with respect to those contracts, meaning the mistake will not affect any of its previously reported GAAP results.
Shares were down 6.8% in late trade at $2.35 each, mid-way through its session range of $2.26 to $2.41 a share.
In other sector news,
(+) ARTC, Giving up big, early gains after paying $30 mln to settle Justice Department probe into alleged securities fraud. The government will charge the device-maker with one conspiracy charge but will enter a two-year deferred prosecution agreement.
(-) QCOR, TheStreet.com labels the biotech stock "water-logged and getting wetter," after falling below support levels and a much wider-than-usual trading range for shares today.