Top Health Care Stocks
Health care stocks were narrowly mixed, with the NYSE Health
Care Sector Index climbing about 0.1% and shares of health care
companies in the S&P 500 dropping about 0.1% as a group.
In company news, Abiomed Inc. (
) soared to an all-time high Wednesday after regulators cleared its
Impella RP circulation-assist device for U.S. sales and the company
also reported fiscal Q3 results beating Wall Street
ABMD shares recently were up almost 30% to $50.04 each, easing
from its new record high of $53.89 a share earlier Wednesday.
Heading into Wednesday's session, the stock already had risen more
than 45% over the past 12 months.
The U.S. Food and Drug Administration approved ABMD's
percutaneous single-access heart pump designed for right heart
support under its Humanitarian Device Exemption, which allows
companies to market a device without submitting evidence
demonstrating its efficacy. Devices approved under the humanitarian
exemption typically are used to treat rare diseases and conditions
affecting fewer than 4,000 Americans each year.
The company last night also reported net income during the three
months ended Dec. 31 of $12.7 million, or $0.30 per share,
improving on a $4.4 million profit during the same quarter last
year and crushing the Capital IQ consensus by $0.26 per share.
Revenue jumped 34% over year-ago levels to $62 million, topping
estimates by around $8.81 million.
For the current fiscal year ending in March, ABMD is projecting
between $223 million to $226 million in revenue, exceeding the
Street view by at least $11.64 million. For FY16, it sees revenue
in a range of $260 million to $270 million, breezing past the
market consensus looking for $248.6 million in revenue next
In other sector news,
(+) APRI, (+15.5%) Receives U.S. Patent for its RayVa topical
cream for the treatment of reduced bloodflow to toes and fingers in
response to cold or stress. The company also said FDA is
considering a priority review of its New Drug Application for
(-) AGIO, (-4.7%) Downgrade to Neutral from Buy at Citigroup,
which also increased its price target for the stock by $44 to $137
a share, citing recent positive research data.