Friday's Health Winners & Losers
Health care stocks were lower Friday, despite a $60 million deal and Corcept's (CORT) continued rise.
Boston Scientific (BSX) said Thursday after the market's close that it purchased technology for treating symptomatic benign prostatic hyperplasia, or enlarged prostate, from biotechnology company Celsion (CLN). The companies said the purchase regards primarily the Prolieve Thermodilatation System, for which Boston Scientific has been the exclusive distributor since 2004.
Columbia, Md.-based Celsion said Boston Scientific will pay $60 million for the Prolieve assets in three installments, $30 million at the closing of the deal and then $15 million on the first and second anniversaries of the closing. Celsion also said it repaid the principal and accrued interest on a $15 million promissory note due to Boston Scientific at closing.
Boston Scientific was down 23 cents, or 1.4%, to $15.78. Celsion fell 38 cents, or 5.4%, to $6.72.Corcept Therapeutics shot up another 37 cents, or 21%, to $2.12 Friday, a day after the company bounded 23% after releasing positive proof-of-concept study results on weight-loss drug Corlux. Punk, Zeigel & Co. on Friday upgraded the stock to accumulate from market perform. Medtronic (MDT) on Friday said that it launched a new physician component to its CareLink Therapy Management System for Diabetes. It also announced a new quarterly dividend of 12.5 cents a share for the company's common stock, a 14% increase compared to its prior quarterly dividend of 11 cents a share. The company said the dividend is payable on July 27 to shareholders of record at the close of business on July 6. In addition, Medtronic is increasing its share repurchase plan by an additional 50 million shares of its common stock, raising the total to 60 million shares. The company said this represented 4.4% of its total common shares outstanding. And finally, Medtronic elected David Calhoun and Ken Powell to its board of directors. Calhoun is chairman of the board and chief executive of The Nielsen Company. Powell is president, chief operating officer and director of General Mills (GIS). Medtronic closed down 18 cents, or 0.4%, to $51.61. Johnson and Johnson (JNJ) was also down just a bit Friday. On Thursday the company said it received an approvable letter from the Food and Drug Administration for schizophrenia drug Risperdal for adolescents. The letter didn't call for additional study data, just a bit of tinkering with the label, according to the company, which was down $1.38, or 2.2%, to $60.73. Johnson and Johnson is part of the Amex Pharmaceutical Index, which was down 5.48, or 1.6%, to 344.60 on Friday.
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