Markets

Health Care Sector Update for 04/09/2015: ROSG,NVGN,TRIV

Top Health Care Stocks

JNJ +1.23%

PZE +1.04%

MRK +0.92%

ABT +0.42%

AMGN +0.70%

Health care stocks were posting their best gains of today with the NYSE Health Care Sector Index advancing 0.5% and shares of health care companies in the S&P 500 gaining 0.7% as a group.

In company news, Rosetta Genomics ( ROSG ) rallied Thursday after the laboratory and research company said it was buying a molecular diagnostics and services firm, from Prelude Corp for around $3.5 million in cash and stock.

The purchase of PersonalizeDx is expected to significantly add to ROSG finances, with pro forma 2015 revenue seen rising to between $10 million to $12 million and over $18 million next year. ROSG also is now expecting to achieve positive EBITDA and cash flow before the end of 2017.

The company also gains proprietary cancer tests and additional commercial and laboratory operations.

The purchase price includes $2.0 million in cash and 500,000 ROSG shares in addition to other assets and services to be provided to Prelude Corp by ROSG. The deal is expected to close within the next several weeks and is contingent on Prelude first closing on its purchase of PersonalizeDx from an undisclosed third party.

ROSG shares recently were up nearly 13% at $3.32 each, backing away following an initial % run to $3.84 soon after the deal was announced. The stock has traded within a 52-week range of $2.07 to $5.55, declining nearly 29% over the past 12 month prior to today's surge.

In other sector news,

(+) NVGN, Said studies at the University of Queensland Diamantina indicate its Anisina experimental drug killed melanoma cells regardless of their mutational status.

(-) TRIV, Guides Q1 revenue at least $1.37 mln under $9.37 mln Street consensus. Also lowers FY15 outlook to a new range of $36 mln to $39 mln, trailing analyst estimates by at least $6.84 mln.

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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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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