Markets

Health Care Sector Update for 09/28/2015: CDNA,RDY,VSTM

Top Health Care Stocks

JNJ +0.55%

PZE -2.92%

MRK -3.74%

ABT -2.34%

AMGN -4.37%

Health care stocks were sharply lower following another plunge for biotech shares, with the NYSE Health Care Sector Index falling nearly 3.5% and shares of health care companies in the S&P 500 down over 3.9% as a group.

In company news, CareDx ( CDNA ) fell to a record low Monday after the molecular diagnostics company today responded to a proposed 77% reduction in the amount the Centers for Medicare & Medicaid Services would pay for the company's AlloMap genetic test compared with current federal reimbursement rates.

Under the new proposal, AlloMap reimbursement would drop to $644.62 from the $2,821 paid under the current fee schedule. The company has until Nov. 24 to challenge the new fee schedule, which is slated to take effect on Jan. 1, 2016.

CDNA shares were down almost 40% at $4.05 apiece, earlier sliding to a new, all-time low of $3.71 a share.

In other sector news,

(+) RDY, (+3.4%) Launches 20-, 40-milligram delayed-release capsules of its esomeprazole magnesium heartburn treatment.

(-) VSTM, (-39.4%) Stops enrollment in Phase II trial of its VS-6063 drug candidate to treat patients with mesothelioma after demonstrating no difference in efficacy versus placebo.

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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