Health Care Sector Update for 10/05/2015: ATRC,CTRV,GILD,SIEN

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Top Health Care Stocks

JNJ +0.63%

PZE -0.06%

MRK -0.36%

ABT +1.62%

AMGN +0.16%

Health care stocks were narrowly lower today, with the NYSE Health Care Index sinking about 0.3% while shares of health care companies in the S&P 500 slipping 0.4% lower as a group.

In company news, shares of AtriCure Inc. ( ATRC ) retreated Monday after the medical device manufacturer today said it had acquired nContact, paying $91 million in cash and stock for the privately held cardiac-ablation company.

Under terms of the transaction, AtriCure will issue 3.7 million shares of its common stock valued at $24.60 each in addition to paying $8 million in cash, subject to closing adjustments.

The deal also includes up to $50 million in milestone payments to nContact tied to completion of late-stage testing and pre-marketing approval of its EPi-Sense-AF Guided coagulation system to treat atrial fibrillation and other forms of arrhythmia. nContact shareholders also are entitled to bonus payments when revenue growth tops 25% per year through 2019.

AtriCure today also said it is expecting around $31.6 million in revenue for its Q3 that ended last week, topping analyst estimates looking for about $31.2 milion. It also sees FY15 revenue in a range of $128 million to $129 million, beating the Capital IQ consensus expecting around $127.6 million in revenue this year. nContact is projected to generate around $1.5 million in product sales through the end of 2015.

ATRC shares were down nearly 11% at $20.09 apiece, earlier sinking to a session low of $19.49 a share.

In other sector news,

(+) CTRV, (+99.7%) Presents new data claiming its CMX157 drug candidate is 60-times more effective treating the Hepatitis B virus than Gilead's ( GILD ) Viread HBV drug treatment.

(-) SIEN, (-20.3%) Brazilian authorities temporarily suspended all of the company's production of medical devices during a compliance review of its manufacturing facility.

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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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