Tuesday's Health Winners & Losers
Trial results depleted DepoMed (DEPO) shares Tuesday, while other biotech stocks moved on varied news.
DepoMed gave up 60% after announcing that a phase III trial for Gabapentin GR, an investigative extended-release tablet for neuropathic pain, didn't meet its endpoint. The stock fell $2.93, to $2.00.
DepoMed tugged at the Nasdaq Biotechnology index, which was down 3.69, or 0.45, to 811.
Pained less severely, SonoSite (SONO), fell $2.25, or 6.5%, to $32.34. The company, which develops and manufactures hand-carried ultrasound systems, said it plans to offer $150 million convertible senior notes due 2014. It will grant underwriters a 30-day option to purchase $22.5 million more to cover overallotments.SonoSite said it will use the proceeds to fund acquisitions and for general corporate purposes, and it may use a portion of the proceeds to enter into a convertible note hedge transaction with an affiliate of one of the underwriters, which would cover 67% of the notes converted. On the winning end Tuesday, Kensey Nash (KNSY) benefited from cutting its losses. The company said it will end all activities on its embolic protection, or blood-clot prevention, platform, including a clinical trial for ProGuard. It's doing so in response to the changing market, to reduce costs and to allow its sales force to focus on its thrombectomy and chronic total occlusion platforms to surgically remove blood clots and clear blocked arteries. The medical technology company said it won't relaunch its TriActiv FX line in the U.S. and will stop offering the TriActiv ProGuard System in Europe. As a result, Kensey Nash expects ongoing savings of $3.6 million annually, or 20 cents a share. Kensey Nash rose $1.08, or 4%, to $28.41.
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