Sector Update: Healthcare
Healthcare stocks were mixed in mid-day trading, with the NYSE Healthcare Sector Index climbing about 0.1% and shares of healthcare companies in the S&P 500 falling less than 0.1% as a group.
In company news, Team Health Holdings ( TMH ) shares were up more than 3% Tuesday after analysts at UBS began coverage of the healthcare staffing company with a Buy rating and a price target of $54 a share.
THM is a likely beneficiary of healthcare reform, according to analysts A.J. Rice, Brandon Fazio and Jailendra Singh. The company also has not reported a decline in same-contract revenue growth in its history, they added, explaining the non-discretionary nature of its emergency medical services - accounting for nearly three-quarters of its total revenue - effectively insulates the business from volume and price pressures seen at other firms in recent years.
Shares were up 3.2% at $46.47 apiece in recent trade, earlier climbing as high as $47.18 a share. The stock has a 52-week range of $33.89 to $48.83 a share.
In other sector news,
(+) LJPC, (+63.9%) Announces positive, top-line results from Phase II testing of its GCS-100 in patients with chronic kidney disease, with a 1.5 milligram per square meter dose resulting in statistically significant improvement in kidney function.
(+) TKMR, (+2.5%) Reverses initial declines that followed the company disclosing plans to raise around $60 mln in new equity funding from the sale of its common stock. Net proceeds will be used to advance product candidates as well as for general corporate purposes.