Sector Update: Health Care
Health care stocks were mostly lower today with the NYSE Healthcare Sector Index sliding nearly 0.7% while shares of health care companies in the S&P 500 were down 0.9% as a group.
In company news, StemCells Inc. ( STEM ) declined Tuesday after the biotech company working to commercialize stem cell therapeutics proposed a $20 million private placement of stock and warrants to two unnamed institutional investor groups.
The stock also likely is being pressured by Federal Reserve commentary today suggesting biotechnology stocks - along with shares of social media companies - may be "substantially stretched."
The company is planning to sell 11.3 mln shares of its common stock along with warrants to buy up to 9.6 mln additional shares exercisable at $2.17 each and expiring 13 months after the offering closes. It expects to use the new funds for general company purposes, including working capital, product development and other capital expenditures.
STEM shares were down about over 10% at $1.82 each in late trade, holding just 2 cents above its session low. The stock has traded in a 52-week range of $1.15 to $2.43 a share, rising about 12.3% over the past 12 months.
In other sector news,
(-) PPHM, Reports fiscal Q4 net loss of $10.6 mln, or $0.06 per share, up from an $8.4 mln net loss in the year-ago quarter but beating analyst estimates by $0.01. Total revenue rises 52.1% year over year to $6.47 mln, topping Street by $1.72 mln.
(-) NURO, Registers for future sale 1.97 mln shares of common stock issuable following conversion of its Series A-4 preferred stock as well as 3.92 mln shares from the exercise of warrants held by funds affiliated with Sabby Management.
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