Health Care Sector Update for 05/08/2018: MNK,VRX,VRX.TO,FOLD,ARLZ,ARZ.TO

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Top Health Care Stocks

JNJ -0.86%

PFE +0.30%

ABT -1.15%

MRK -0.99%

AMGN +0.40%

Health care stocks extended their declines this afternoon, including a more than 0.7% drop for the NYSE Health Care Index in recent trade. Also today, shares of health care companies in the S&P 500 were down over 0.8% as a group while the Nasdaq Biotechnology index was slightly more than 0.6% lower in late trading today.

Among health care stocks moving on news:

- Mallinckrodt ( MNK ) has reversed course Tuesday afternoon, dropping almost 9% and giving back a more than 7% gain that followed the drugmaker reporting non-GAAP Q1 net income and revenue topping Wall Street projections. Excluding one-time items, the company earned $1.31 per share, improving on $1.04 per share during the comparable period last year and beating the Capital IQ consensus by $0.24 per share. Total revenue rose to $572.6 million during the three months ended March 30 from $560 million during the same quarter last year and also exceeding the $569.1 million analyst mean.

In other sector news:

+ Valeant Pharmaceuticals International (VRX,VRX.TO) was maintaining a double-digit advance during Tuesday trading, rising as much as 17%, after the drug maker reported Q1 sales exceeding Wall Street forecasts and disclosed plans to change the company's name to Bausch Health Companies in July. The company produced $2 billion in sales during the three months ended March 31, down from $2.11 billion in year-ago sales but still topping the $1.95 billion analyst consensus. For FY18, the company raised its sales guidance and is now projecting revenue in a range of $8.15 billion to $8.35 billion, up from its prior view expecting between $8.10 billion to $8.30 billion and straddling the $8.23 billion consensus. The company also said it will maintain its VRX ticker symbols on both the Nasdaq and Toronto stock exchanges until the roll out of its new corporate brand identity.

- Amicus Therapeutics ( FOLD ) retreated Tuesday after the biopharmaceuticals company reported mixed Q1 results, producing a smaller-than-expected Q1 net loss during the three months ended March 31 although revenue missed analyst estimates. Net loss for the first three months of 2018 was $0.28 per share, narrowing a $0.39 per share net loss during the same quarter last year and topping the Capital IQ consensus by $0.12 per share. Revenue grew to $16.7 million from $4.2 million last year but still trailed Street views by around $200 million.

- Aralez Pharmaceuticals Inc. (ARLZ,ARZ.TO) was pummelled Tuesday, sinking over 70% to a worst-ever 45 cents a share after the Canadian drugmaker said it will soon abandon its U.S. operations and instead focus on its successful Toprol-XL beta-blocker heart medication in its domestic market. The Company also said it was continuing to evaluate other strategic opportunities to improve its liquidity, including licensing or selling U.S. rights for its Yosprala, Fibricor and Bezalip SR medications. Aralez recently retained Moelis & Company to assist with those efforts as its financial and strategic advisor. Separately, Aralez Tuesday reported a Q1 net loss of $0.29 per share, narrowing a $0.41 per share net loss last year but still coming in $0.04 per share wider than the Capital IQ consensus. Total revenue rose 47% year over year to $38.1 million, topping the $31 million Street view and the $26 million in year-ago sales.

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: MNK , FOLD ,

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