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Sector Update: Healthcare

Posted
9/23/2013 3:56:00 PM
By: MT Newswires
Referenced Stocks:BNFT

Healthcare stocks are lower with the NYSE Healthcare Sector Index declining about 0.4% and shares of healthcare companies in the S&P 500 falling about 0.6% as a group.

In company news, Benefitfocus Inc. ( BNFT ) is down about 2.3% in late trade at $49.75 a share and the cloud-based healthcare insurance platform saying it has closed its initial public offering of 4.935 million shares of its common stock priced at $26.50 apiece, generating around $131 million in gross proceeds.

BNFT sold 3 million shares in the IPO, pocketing about $70.6 million in net proceeds, with early investors selling the remaining 1.935 million share. The company expect to use its proceeds for working capital and general corporate purposes, including executing on its growth strategy and developing new products and services.

In other sector news,

(+) CRME, Publishes positive data from an open-label study comparing treatment of its vernakalant intravenous treatment to oral doses of propafenone or flecainide in patients with atrial fibrillation.

(-) SGMO, Closes public offering of just over 7 million shares, including 915,000 shares issued to cover underwriter overallotments, priced at $10.58 apiece and generating around $74.2 million in gross proceeds.