Healthcare stocks reversed narrow losses earlier today and were ending slightly higher with the NYSE Healthcare Sector Index adding about 0.1% and shares of healthcare companies in the S&P 500 gaining about 0.2% as a group.
In company news, shares of Cross Country Healthcare ( CCRN ) rose Tuesday after the healthcare staffing firm announced a deal to acquire Medical Staffing Network for around $48.3 million, subject to post-closing adjustments for working capital.
The target company currently has 55 U.S. locations providing per diem, contract and permanent hire staffing services, generating around $229 million in revenue during the 12 months ended Dec. 31, and another $78 million in revenue during the first four months of 2014.
CCRN said it expects the deal to trim its expected FY14 earnings by $0.10 to $0.12 per share, largely due to acquisition and integration charges, while boosting its FY15 earnings by $0.12 to $0.15 per share. Analysts currently are projecting the company to produce EPS of $0.08 this year and earning $0.27 per share in FY15, according to Capital IQ.
CCRN shares were ahead nearly 7% at $6.05 each late in Tuesday's session, earlier climbing to an intra-day high of $6.14 a share. The stock has a 52-week range of $4.83 to $11.54 a share, rising about 11.2% over the past 12 months.
In other sector news,
(+) BIOC, Aegis Capital begins coverage with a Buy recommendation and a $16 price target. The company yesterday expanded its OncoCEE-BR test platform to include estrogen receptors.
(-) THRX, Late Monday completes separation of its late-stage partnered respiratory assets from its Teravance Biopharma ( TBPH ) operations, creating two publicly traded companies. TBPH is steady at $19.51 a share.
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