Health Care Sector Update for 08/10/2017: PRGO,RKSA,STNT

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Top Health Care Stocks

JNJ +0.29%

PFE -0.03%

ABT -0.64%

MRK -0.05%

AMGN -1.86%

Health care stocks were mostly lower Thursday afternoon, with the NYSE Health Care Index slipping more than 0.7% while shares of health care companies in the S&P 500 were down almost 0.9% as a group.

In company news, Perrigo Company ( PRGO ) jumped out to a nearly 21% advance on Thursday, reaching a session high today of $80.00 a share, after the specialty drugmaker earlier reported above-consensus Q2 financial results, raised its FY17 earnings outlook and also unveiled a deal to sell its active pharmaceutical ingredient business for $110 million in cash.

Excluding one-time items, the company earned $1.22 per share, down from $1.29 per share during the same quarter last year but still topping the Capital IQ consensus by $0.37 per share. Net sales fell 7.5% to $1.24 billion, also beating the $1.18 billion Street view.

Looking ahead, Perrigo said is projecting non-GAAP FY17 net income in a range of $4.45 to $4.70 per share, up from its prior forecast expecting between $4.15 to $4.50 per share and exceeding the analyst mean by at least $0.17 per share.

Separately, Perrigo this morning said private equity firm SK Capital was buying its active ingredients business in Israel, with the divested unit continuing to supply its former parent company with commercial and pipeline ingredients. The transaction is expected to close before the end of 2017.

In other sector news,

(+) RKDA, (+22.7%) FDA completes safety evaluation of the company's stress-tolerant HB4 soybeans, clearing them for use in human foods and animal feeds. A similiar review is pending with the U.S. Department of Agriculture.

(-) KURA, (-22.0%) Launches public offering of 5.3 mln shares of its common stock, with net proceeds slated to fund ongoing research and development as well as for potential acquisitions.

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: PRGO , STNT

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