Wednesday's Health Winners & Losers
Lackluster earnings bogged down a number of health stocks midweek, while others found solace in regulatory approvals and clinical data.
GlaxoSmithKline (GSK) reported a disappointing quarter, facing tough generic competition in the U.S. and a decrease in sales of its diabetes drug Avandia. For the three months ended Sept. 30, GlaxoSmithKline said net profit fell 6% year over year to $2.68 billion, while revenue fell 2% to $11.02 billion.
In light of results, GlaxoSmithKline also announced a $3.1 billion program to cut costs, beef up research and development and streamline manufacturing. The company estimates this will result in annual pretax cost savings of up to $1.4 billion by 2010. It expects 40% of the $1.4 billion savings to come from manufacturing, 40% in sales and administration, and 20% in research and development -- though it didn't give a job-cut figure.
Shares fell 89 cents, or 1.7%, to $51.19. The stock is a component of the Amex pharmaceutical index, which edged down 3.35, or 1%, to 343.45.Also on the decline was Illumina (ILMN), which said non-GAAP third-quarter earnings fell 12.8% to 34 cents a share. It beat Street estimates but fell in after-hours trading and then gave up $4.19, or 6.7%, to $58.19 in recent trading Wednesday. Looking ahead, the company raised fourth-quarter guidance to non-GAAP net income of $19 million to $21 million, or 32 cents a share to 35 cents a share.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV