Sector Update: Healthcare
Healthcare shares are generally flat in pre-market trade.
Magellan Health Services ( MGLN ) expects to generate 2014 net revenue in the range of $3.61 billion to $3.80 billion, and net income in the range of $57 million to $73 million, which translates into diluted earnings per share in the range of $2.00 to $2.56, inclusive of share repurchases to date and the effect of the Affordable Care Act (ACA) tax.
The analyst consensus on Capital IQ stands at $3.40 billion in revenue and earnings of $3.27 per share.
And, Sucampo Pharmaceuticals ( SCMP ) said it has initiated a global phase 3 clinical program to test its lubiprostone in pediatric functional constipation together with development and commercialization partner Takeda Pharmaceuticals.
The phase 3 program was preceded by an open-label trial in 124 patients aged 3 to 17 years, which suggested that lubiprostone warrants further investigation as a potential treatment for children and adolescents with functional constipation.
Finally, shares in Pluristem Therapeutics Inc. ( PSTI ) are up about 4% pre-market after the company said it has sealed a partnership with South Korea's CHA Bio&Diostech through a mutual stock investment worth $10.16 million.
Pluristem has issued 2.5 common stock to CHA, while CHA has issued 1,011,504 shares to Pluristem. This reflects a total consideration of $10.4 million, at a price of $4.16 per Pluristem common share, a premium of 26% over the closing price on December 16, 2013. The shares are subject to a lock up period of one year.