Health Care Sector Update for 02/27/2018: IART,PRGO,MNK,AMRN

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Top Health Care Stocks

JNJ +0.08%

PFE -0.58%

ABT +0.40%

MRK -2.29%

AMGN -1.18%

Health care stocks were well underwater during Tuesday trading, including a nearly 0.9% decline for the NYSE Health Care Index in recent trade. Also today, shares of health care companies in the S&P 500 were down almost 0.8% as a group while the Nasdaq Biotechnology index was dropping more than 1.1% today.

Among health care stocks moving on news:

- Integra LifeSciences Holdings ( IART ) declined Tuesday, with shares of the medical technology company unable to overcome a downward bias for the broader U.S. markets, despite reporting adjusted Q4 net profit of $0.64 per share, up from $0.52 per share during the prior year period and beating Capital IQ consensus by $0.07 per share. Revenue for the quarter climbed to $368.6 million from $255.7 million last year, also exceeding the $362.6 million Street estimate. For FY18, the company is expecting adjusted earnings to be at the high end of its previously provided range of $2.25 and $2.35 per share, citing its reduced tax burden this year. It also sees revenue in a range of $1.46 billion to $1.48 billion compared with the analyst mean looking for $2.30 per share on $1.47 billion in revenue.

In other sector news:

+ Mallinckrodt ( MNK ) rallied Tuesday, racing nearly 36% higher to an intra-day peak of $21.96 a share, after the UK-based pharmaceuticals manufacturer reported better-than-expected Q4 financial results for fiscal Q4 while also providing a mixed FY18 outlook. Excluding one-time items, the company earned $2.01 per share, exceeding the Capital IQ consensus by $0.32 per share. Net sales fell 4.5% year-over-year to $792.3 million but also beat the $769.9 million analyst consensus. For FY18, Mallinckrodt is projecting adjusted per-share earnings between $6.00 to $6.50 following a 3% to 6% increase over its 3.22 billion in annual sales last year, equal to a range of $3.32 billion to $3.42 billion. Analysts are modelling a $7.14 per share adjusted profit on $3.18 billion in revenue.

- Amarin ( AMRN ) dropped almost 6% to a session low of $3.48 a share after Tuesday reporting a Q4 net loss of $0.08 per share, improving modestly on a non-GAAP net loss of $0.10 per share during the year-ago period but still doubling up the Capital IQ consensus expecting a $0.04 per share net loss, excluding one-time items. Revenue for the biopharmaceutical company rose to $53.9 million during the three months ended Dec. 31 from $38.7 million last year and also missed the $52.7 million Street view. Amarin reiterated its forecast expecting between $45 million to $48 million in Q1 net product revenue for Q1 and rising to at least $55 million during Q2. Analysts, on average, are expecting the company to generate about $46.7 million in revenue during the current quarter ending March 31.

- Perrigo ( PRGO ) retreated Tuesday, sinking over 7% to a session low of $81.74 a share, after the Irish generic and over-the-counter drugmaker reported preliminary FY17 financial results but also delayed the release of its complete earnings as well as the accompanying conference call with analysts and investors previously set for Tuesday. The company produced consolidated net sales of $4.9 billion during the 12 months ended Dec. 31, down 6.3% from the $5.3 billion in sales during the prior-year period. Analysts, on average, were expecting around $4.9 billion in FY17 sales. Perrigo also said it needs more time to complete its final income tax review procedures resulting for reconciliations and specific non-cash items, adding it will continue under Quiet Period rules until it completes its Q4 and FY17 financial statements.

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 , US Markets
Referenced Symbols: IART , MNK , AMRN , PRGO

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