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Healthcare Stocks Dragged Under By Broader Market Declines; athenahealth Sinks After Einhorn Comments

Top Healthcare Stocks

JNJ -0.21%

PFE -1.44%

ABT -0.49%

MRK -2.34%

AMGN -0.37%

Healthcare stocks were lower in late trade with the NYSE Healthcare Sector Index sliding 0.4% and shares of companies in the S&P 500 down 0.6% as a group.

In company news, shares of athenahealth ( ATHN ) tumbled Tuesday after a prominent hedge fund manager last night said the company's stock is set to fall as much as 80% from its recent all-time highs.

ATHN shares were down nearly 14% in late Tuesday at $109.41 each, sliding as low as $107.70 a share during today's session. The stock reached a record high of $206.70 on Feb. 26 and already was down 38.7% from its all-time peak through Monday's close.

Speaking last night at the annual Sohn Investment Conference in New York, Greenlight Capital founder David Einhorn said was shorting ATHN shares, believing the stock has been "caught up in a bubble."

Separately Tuesday, ATHN reaffirmed its outlook for FY14 adjusted per-share earnings and revenue, forecasting non-GAAP EPS of $0.98 to $1.10 on between $725 million to $755 million. The Street is looking for a $1.04 per share profit at ATHN this year on $741.17 million in revenue.

In other sector news,

(+) VVUS, Narrows Q1 net loss to $0.15 per share from $0.53 loss last year and beating estimates by $0.22 per share. Revenue rises 12.5% year over year to $36.7 mln, topping Street view by $25.3 mln.

(-) MR, Q1 revenue grows 9.4% to $264.8 mln but misses analyst consensus by $27.7 mln. EPS of $0.39 beats by $0.02 per share. Said non-GAAP EPS in FY14 will be little changed from FY13 at $2.20; Street is expecting $2.08 per share this year.

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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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