Health Care Sector Update for 01/28/2015: ABMD,PSTI,AGIO

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Top Health Care Stocks

JNJ +0.66%

PZE -0.83%

MRK +0.62%

ABT -0.33%

AMGN -1.22%

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. ( ABMD ) 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 expectations.

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 year.

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 RayVa.

(-) 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities
Referenced Symbols: ABMD

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