Thursday's Health Winners & Losers
Preliminary second-quarter revenue and patent cops-and-robbers sent SonoSite (SONO) up on an otherwise ho-hum day for biotech stocks.
SonoSite, a handheld ultrasound device maker, climbed after reporting strong preliminary results for the quarter ended June 30. The company said that due to improved sales, quarterly revenue grew about 20% to more than $47 million compared to the same quarter in 2006.
For the first half of the fiscal year, SonoSite said worldwide revenue grew about 18% to some $90 million compared with $76.4 million for the first half of the previous year.
The company also said Thursday that it's filing a counterclaim against General Electric (GE) and certain of its affiliates to the complaint those parties filed against it on May 15. SonoSite said it's filing its answer to the complaint denying all of GE's claims and alleging that the asserted patents are either invalid, not infringed or both.SonoSite alleges in the counterclaim complaint that GE and its affiliated companies infringed on its patents for two diagnostic instruments. SonoSite scaled $3.40, or 10.5%, to $36.45, while GE lost 10 cents, or 0.5%, to $38.51. Also on the move, Cell Therapeutics (CTIC) climbed 44 cents, or 14.6%, to $3.46. The company said Tuesday after market close, that it named a new medical director for its XYOTAX/CT-2103 program, which involves a candidate for ovarian cancer and lung cancer in women. Dr. Jay Umbreit will take over the company's PGT307 trial. Umbreit most recently developed pharmaceutical products for PPD, a global contract research organization. Cell Therapeutics is part of the Nasdaq Biotechnology Index, which was down 1.35, or 0.2%, to 810.89. RadNet (RDNT) was also up after the company announced that it had established a $445 million credit line with GE Healthcare Financial Services to refinance existing debt and also to fund working capital for future expansion. The diagnostic imaging services company said it expects annual interest cost savings of about $5.4 million and believes the financing will be completed by August 2007. RadNet was up 20 cents, or 2.04%, to $10. Elsewhere, Advanced Medical Optics (EYE) made a $75-a-share bid for Bausch & Lomb (BOL), according to a report in The Wall Street Journal citing people familiar with the matter. The bid would compete with Warburg Pincus' offer, valued at $45 in cash and $30 in stock. Advanced Medical Optics rose 42 cents, or 1.2%, to $35.89, while Bausch & Lomb jumped $3.36, or 4.9%, to $72.
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