Top Health Care Stocks
Health care stocks traded higher today, including a more than 0.6% gain for the NYSE Health Care Index in recent trade. Also today, shares of health care companies in the S&P 500 were up almost 0.8% as a group while the Nasdaq Biotechnology index was rising nearly 2.1% today.
Among health care stocks moving on news:
+ ArQule ( ARQL ) was ending sharply higher on Tuesday, at one point climbing almost 18%, after saying it signed a license agreement with Swiss biotech Basilea Pharmaceutica International to develop and commercialize its derazantinib pan-FGFR inhibitor worldwide outside of China, Hong Kong, Macau and Taiwan. ArQule received a $10 million upfront payment and is eligible for up to $326 million in additional milestone payments in addition to staggered single-digit to double-digit royalties on net sales. Under terms of the contract, Basilea will take on all development, manufacturing and commercialization costs, while ArQule may have the opportunity to directly promote derazantinib in the United States under circumstances.
In other sector news:
+ NovoCure ( NVCR ) raced over 10% higher on Tuesday after reporting positive top-line Phase II results demonstrating meaningful improvements in overall survival and progression-free survival among patients who received Tumor Treating Fields plus standard of care chemotherapy, pemetrexed and cisplatin or carboplatin. The results were compared to historical control data of patients who received standard of care chemotherapy alone, the company said on Tuesday.
- Johnson & Johnson ( JNJ ) declined Tuesday despite the health conglomerate reporting Q1 financial results exceeding analyst expectations. Excluding one-time items, the company earned $2.06 per share during the three months ended March 31, up from $1.83 per share during the same quarter last year and beating the Capital IQ consensus by $0.06 per share. Sales rose to $20.01 billion from $17.77 billion last year, also topping the $19.50 billion Street view. The company also is projecting FY18 earnings and revenue in-line with Wall Street expectations.
- Clovis Oncology ( CLVS ) dropped as much as 3% on Tuesday after the biopharmaceuticals company late Monday priced a $300 million public offering of 1.25% convertible senior notes due 2025 at 100% of par. It also completed a $100 million public offering of 1.8 million shares priced at $54.41 per share, matching the company's most recent closing price. The notes have an initial conversion price of around $76.17 per share.