Health Care Sector Update for 08/07/2018: MNK,MNOV,RKDA,SYNH

Top Health Care Stocks

JNJ -0.27%

PFE -0.27%

ABT -0.66%

MRK +0.41%

AMGN +1.01%

Health care stocks still were little changed just before Tuesday's closing bell, including a less than 0.1% gain for the NYSE Health Care Index in recent trade. Also, shares of health care companies in the S&P 500 also were up less than 0.1% as a group although the Nasdaq Biotechnology index jumped out to a more than 1.1% gain today.

Among health care stocks moving on news:

+ Mallinckrodt plc ( MNK ) raced as much as 27% higher on Tuesday after the drugmaker beat analyst projections with its Q2 financial results and also raised its FY18 outlook. Excluding one-time items, the company earned $1.78 per share on $631.7 million in revenue, topping Wall Street estimates expecting a $1.48 per share adjusted profit on $620.1 million in revenue. It also increased its FY18 earnings guidance by $0.50 per share to a new range of $6.50 to $6.90 per share, exceeding the $6.23 per share analyst mean. It also now sees FY18 revenue growing between 4% to 7% over the prior year, a penny higher on both sides of its previous forecast and crushing the Street view expecting a 23.4% year-over-year decline to $2.47 billion in yearly sales.

In other sector news:

+ MediciNova ( MNOV ) was nearly 3% higher in late Tuesday trading after saying it expects to soon begin Phase II/III testing of its ibudilast drug candidate in patients with degenerative cervical myelopathy. The company is partnering with the University of Cambridge during the upcoming trial to study whether ibudilast is more effective than a placebo in improving patient outcomes following spinal surgery.

- Arcadia Biosciences ( RKDA ) swung between moderate gains and losses on Tuesday, trading in a range almost 2% either side of its break-even mark, after saying a July 25 European Commission decision limiting the use of modern gene-editing technologies in foods sold within the EU should not restrict its TILLING pipeline of genetically modified vegetables and grains. It also said it will continue using new gene-editing techniques to accelerate the commercialization of value-added plants in the United States and other jurisdictions where they are not regulated as genetically modified organisms.

- Syneos Health ( SYNH ) dropped over 2% on Tuesday after pricing a $300.9 million secondary offering of 6 million shares previously owned by Thomas H Lee Partners LP at $50.15 each, representing a 3.5% discount to Monday's closing price.

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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