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Sector Update: Healthcares

By: MT Newswires
Posted: 4/25/2014 8:50:00 AM
Referenced Stocks: PBH;COV;IMGN

Healthcare shares were generally flat to lower in pre-market trade on Friday.

In healthcare stocks news, drug retailer Prestige Brands ( PBH ) Friday said it has signed a definitive agreement to acquire Insight Pharmaceuticals, a distributor of feminine care and other over-the-counter healthcare products, for $750 million in cash.

The transaction, along with the previously announced Hydralyte deal, is expected to bring in $800 million in pro forma revenues and $300 million in adjusted EBITDA.

PBH was flat in pre-market trading on Friday and closed at $27.31 Thursday.

And, medical equipment manufacturer Covidien ( COV ) on Friday reported GAAP net income of $441 million, or $0.97 per diluted share, up from last year's GAAP net income of $439 million, or $0.80 per diluted share. On an adjusted basis, net income was $435 million, or $0.96 per diluted share, versus the Capital IQ consensus of $0.95. Net sales increased to $2.6 billion from $2.53 billion, in line with Street view.

COV was flat in pre-market trading on Friday and closed at $70.96 Thursday.

Finally, ImmunoGen ( IMGN ) reported its fiscal Q3 net loss widened, revenue fell and said it cut its full year guidance.

The biopharmaceutical company reported a net loss of $37.5 million, or $0.44 per basic and diluted share, compared to a net loss of $1.4 million, or $0.02 per basic and diluted share. Included in the current period is a $0.15 per share non-cash expense related to the collaboration recently established with CytomX.

Analysts expected a loss of $0.27.