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Sector Update: Health Care

By: MT Newswires
Posted: 7/24/2014 3:44:00 PM
Referenced Stocks: IVC

Health care stocks were narrowly lower today with the NYSE Healthcare Sector Index slipping about 0.2% and shares of healthcare companies in the S&P 500 also falling about 0.1% as a group.

In company news, Invacare Corp ( IVC ) slid to a 20-year low Thursday after the medical devices manufacturer posted a wider Q2 net loss and revenue trailing analyst expectations and said its chief executive officer will retire from the company next week.

IVC shares were off about 16% at $14.75 each, earlier falling to their lowest share price since July 1994 at $14.41 a share. Over the past 12 months, the stock has declined slightly less than 6% in value.

The company recorded a $0.36 per share net loss, exceeding the the Capital IQ consensus by $0.14 per share. Revenue declined 3.9% year over year to $331.3 million, also lagging estimates by around $3.45 million.

"Clearly, Invacare's businesses outside of Europe are under pressure and we are not pleased with the second quarter's consolidated financial results," CEO Gerald Blouch said in prepared remarks, adding the company is focused on improving free cash flow and restoring profitability in its North American and Asia/Pacific segments.

"We also are working to establish a new credit facility with our banks, as our existing credit facility matures in October 2015," Blouch said.

Separately today, IVC said Blouch will step down from the company on July 31 and will be replaced on an interim basis by Chief Financial Officer Robert Gunbranson.

In other sector news,

(+) SPNC, FDA approves the company's Turbo-Tandem and Turbo Elite peripheral laser atherectomy devices for treating in-stent restenosis.

(-) INCY, Reports 43.4% response rate among patients with polycythemia vera treated with its ruxolitinib drug candidate and a 29.6% response among patients treated with hydroxyurea, failing to produce a statistically significant reduction in symptoms.