Top Health Care Stocks
Health care stocks were lower this afternoon, with the NYSE Health Care Index falling 0.5% while shares of health care companies in the S&P 500 were down 0.5% as a group.
In company news, shares of Medgenics ( MDGN ) slid Thursday after the biotech company priced a $40 million public offering of 6.155 million shares at $6.50 apiece, a 16.9% discount to Wednesday's closing price for the stock.
Net proceeds will fund continued product development activities, including Medgenics's TARGT platform isolating protein and peptides to treat chronic conditions as well as the NFC-1 neuromodulator technology obtained by the company during its recent $2 million acquisition of neuroFix Therapeutics LLC.
The Sept. 9 purchase agreement commits Medgenics to making $2.80 million in milestone payments to a a pair of neuroFix investors after completing an offering producing at least $35 million in net proceeds. The company had said it planned to soon make those payments regardless of the size of the current offering, according to final prospectus.
MDGN shares were down almost 15% at $6.66 each, climbing slightly from a session low of $6.60 a share. The stock had risen more than 63% over the past 12 months before Thursday's slump.
In other sector news,
(+) XOMA, (+33.0%) Signs licensing pact with Novartis ( NVS ) that could pump as much as $480 million into the biotech company in exchange for global rights to its anti-transforming growth factor-beta antibody program.
(-) FOLD, (-7.8%) Registers 5.92 mln shares for a potential secondary offering, including almost 5.69 mln shares issued to former Scioderm shareholders after the company's $80 million acquisition closed Wednesday.
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