Top Health Care Stocks
Health care stocks extended slim mid-day gains, stretching out to a more than 0.7% gain for the NYSE Health Care Index. Shares of health care companies in the S&P 500 were up over 0.6% as a group while the Nasdaq Biotechnology index held on for a more than 0.1% advance today.
Among health care stocks moving on news:
(+) Evolent Health ( EVH ) still was nearly 1% higher shortly before Wednesday's closing bell, drifting off a more than 7% gain earlier in the session that followed the health care delivery and payments company saying it was acquiring New Century Health from NCIS Holdings and New Century Investment for up to $217 million in cash and stock. Under terms of the proposed transaction, Evolent will issue 3.1 million shares of its Class B common stock and pay $120 million in cash upon closing. The purchase price also include earn-outs worth up to $20 million in cash and stock based on new business activity in the future. The acquired business generated $177 million in adjusted revenue and about $20 million in adjusted EBITDA during the 12 months ended June 30.
In other sector news:
(+) Galapagos ( GLPG ) rose to a new record high on Wednesday, climbing over 18% to a best-ever $121.60 a share, after releasing encouraging Phase III results for its filgotinib investigational treatment for patients with rheumatoid arthritis. The data showed filgotinib reached its primary endpoint in the proportion achieving a 20% response on an American College of Rheumatology scale, while the number of patients achieving a 50% or 70% response and clinical remission was significantly higher compared with patients who received a placebo.
(+) Bausch Health Cos (BCH,BCH.TO) advanced almost 17% on Wednesday, topping out at $24.10 a share after saying it has settled its legal fight with Actavis Laboratories FL over its Xifaxan 550 mg tablets without having to make a payment in exchange for allowing Actavis to market a generic form of the gastrointestinal drug starting in January 2028, or a year before Bausch's patent on the drug expires.
(-) EyePoint Pharmaceuticals ( EYPT ) dropped as much as 7% on Wednesday after the ophthalmic drugmaker saw its fiscal Q4 net loss widen to $0.62 per share from a loss of $0.16 per share during the same quarter last year and missing the single-analyst call expecting an $0.11 per share loss. Revenue rose to $715,000 from $701,000 last year, exceeding the Capital IQ consensus by $25,000.