Today's Health Winners and Losers
Shares of Providence Service (PRSC) rose 6% after the company priced its follow-on stock offering at $32 a share. The company, which provides home- and community-based social services, priced 1.8 million shares, up from its earlier figure of 1.5 million shares. Of the 1.8 million shares, the company offered some 1.73 million, up from the company's earlier projection of 1.43 million.
The remaining shares were sold by stockholders. Providence plans to use the proceeds to pay down debt and for general corporate purposes. Shares were up $1.85 to $34.05.
Given Imaging (GIVN) fell 2% after the company, a maker of diagnostics products for disorders of the gastrointestinal tract, cut its first-quarter sales outlook and warned that earnings would be below expectations. The company estimates sales of about $20.2 million, down from an earlier view of $21 million to $23 million. Analysts polled by Thomson First Call project sales of $22.8 million.
The company also warned that, as a result of the sales shortfall, its earnings would fall short of its previous guidance of 1 cent to 3 cents a share. Analysts project earnings of 2 cents a share. Given Imaging blamed the lower-than-expected sales on a 50% ramp-up in its U.S. sales force and by the accompanying training and adjustments necessary to integrate the increased sales force.For the full year, Given Imaging continues to expect earnings of 35 cents to 45 cents a share and sales of $110 million to $120 million. Analysts project earnings of 34 cents a share on sales of $108.4 million. Shares were down 47 cents to $22.41. Other health care volume movers included Pfizer (PFE), down 44 cents to $24.21; UnitedHealth Group (UNH), down $1.15 to $51.28; Boston Scientific (BSX), down 17 cents to $21.36; Merck (MRK), down 44 cents to $33.98; Johnson & Johnson (JNJ), down 25 cents to $57.46; Novavax (NVAX), down 17 cents to $4.97; Generex Biotechnology (GNBT), down 20 cents to $2.53; Amgen (AMGN), down 68 to $70.06; Bristol-Myers Squibb (BMY), down 25 cents to $24.02; and Schering-Plough (SGP), down 30 cents to $18.40.
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