Health Stocks in Motion
Shares of Cubist Pharmaceuticals (CBST) were among the best-performing health-related stocks Tuesday, rising 19% after the company said that its Cubicin antibiotic met its primary endpoints in a phase III trial.
Cubicin met its primary endpoints of non-inferiority in the intent-to-treat and per protocol populations, it said. Cubist plans to file a supplemental new drug application before the end of the year, adding Staphylococcus aureus endocarditis and bacteremia to the indication statement of Cubicin. Shares were trading up $2.03 to $12.96.
Zila (ZILA) rose 7% after the company closed on the sale of its Zilactin brand OTC lip and oral care products. Blairex Laboratories bought the oral care products for $10.3 million in cash and agreed-upon working capital adjustments. Zila said the brand is a valuable but non-strategic asset. "I am committed to maintaining focus on our core business and divesting non-strategic assets," the company's chief executive said in a statement. Zila will continue to concentrate on preventive health care technologies and products that focus on enhanced body defense and the detection of predisease states. Shares were trading up 20 cents to $2.95.
Shares of Corautus Genetics (VEGF) fell 13% after the company sold 4.7 million shares of stock to Boston Scientific (BSX) and a separate group of private investors. Corautus sold 2.6 million shares to the private group, resulting in proceeds of about $10 million. Pending shareholder approval, Boston Scientific will buy 2.1 million shares for $8 million. Both slugs of stock were sold at $3.80 a share. The $3.80 price represents a 24% discount to Monday's closing price of $5. In addition to the stock sale, Boston Scientific amended the terms of its loan agreement with Corautus, making $5 million in loan proceeds available immediately to Corautus. Once the stock deal with Boston Scientific closes, Boston's voting ownership in Corautus will be about 17%. Shares of Corautus were recently trading down 64 cents to $4.36.
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