Markets

Sector Update: Healthcare

Healthcare stocks were ending lower this afternoon with the NYSE Healthcare Sector Index retreating about 0.6% and shares of healthcare companies in the S&P 500 falling about 0.5% as a group.

In company news, Chelsea Therapeutics International Inc. ( CHTP ) was holding on to a 31% advance shortly before the closing bell after the development-stage biotech received a $658 million takeover offer from Danish drug-maker H. Lundbeck A/S.

The deal calls for CHTP shareholders to receive up to $7.94 a share - including $6.44 in cash plus contingent value rights valued as much as $1.50 a share tied to CHTP achieving certain commercial milestones over the next three years. The CHTP board already has signed off on the transaction, which is expected to close by July 1.

Lundbeck said the deal should add to its cash position beginning next year and become earnings accretive by 2016. It gains rights to CHTP's Northera anti-dizziness medication, which Lundbeck said has strong commercial potential and fits well within its existing neurology franchise.

Northera was cleared for U.S. sales in February by the Food and Drug Administration. CHTP had been planning a commercial launch for later this year.

CHTP shares were up 31.1% at $6.56 in late Thursday trading, earlier climbing to a session high of $6.59, stopping 24 cents shy of its 52-week high set back on Feb. 19 following the FDA decision.

In other sector news,

(+) STE, Reaches record high share price after reporting adjusted EPS of $0.91 per share during its fiscal Q4, beating consensus view by $0.05. Projected FY15 earnings of $2.78 to $2.91 per share top analyst estimates by at least $0.02 per share.

(-) SCMP, Q1 earnings of $700,000, or $0.02 per share, reverses year-ago net loss of $3.1 mln but lags consensus by $0.02. Revenue rises 31% over the same period last year to $22.2 mln, trailing forecasts by $1.99 mln.

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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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