Tuesday's Health Winners & Losers
Mergers, earnings and an IPO jolted a few biotech stocks Tuesday.
Medical device company E-Z-EM (EZEM) said Tuesday that it agreed to be bought by Bracco Diagnostics for $241 million, or $21 a share, pending shareholder vote. The price is a 32% premium over the 10-day average closing price as of Oct. 29.
Shares rose $4.08, or 24.9%, to $20.50.
Nycomed also said it will buy dermatologic company Bradley Pharmaceuticals (BDY) for $346 million. The bid is for $20 a share, a $4 premium over Monday's closing price of $16. Bradley's board approved the merger, which is now subject to shareholder vote. Shares added $3.80, or 23.8%, to $19.80.On the earnings front, Sepracor (SEPR) reported a third-quarter profit of $42.9 million, or 37 cents a share, compared to $64.4 million, or 56 cents a share, a year ago. It reported revenue of $283.9 million, a 1.9% decrease from $289.3 million in the year-ago quarter. Analysts surveyed by Thomson Financial had expected 26 cents a share on revenue of $289 million. The company also said it will cut 300 jobs, resulting in a reduction in sales and marketing expenses of $90 million to $100 million. Shares climbed $3.88, or 16.9%, to $26.90. Teva Pharmaceuticals (TEVA) reported third-quarter earnings of $525 million, or 64 cents a share, vs. a profit of $606 million, or 74 cents a share, in the year-ago quarter. Revenue rose to $2.37 billion from $2.29 billion in 2006. Analysts polled by Thomson Financial expected profit of 63 cents per share on revenue of $2.41 billion. The company also said CFO Dan Suesskind, who worked at the company for 31 years, will retire in the middle of next year. He'll be replaced by Eyal Desheh, chief financial officer of Check Point Software Technologies in Tel Aviv. Teva shares gave up 83 cents, or 1.9% to $43.66. Teva is a component of the Amex Pharmaceutical Index, which edged lower 0.05, or 0.01%, to 348.66. Monday after close, Nastech (NSTK) reported a loss of $16.5 million, or 66 cents a share, vs. a loss of $7.8 million, or 36 cents a share, in the year-ago quarter. Revenue fell 66 percent to $1.9 million from $5.5 million in the year-earlier period. Analysts polled by Thomson Financial expected a loss of 44 cents a share. Shares fell $1.80, or 12.1%, to $13.05. Viropharm (VPHM) said it earned $21.3 million, or 26 cents a share, vs. $23.3 million, or 33 cents a share, in the comparable 2006 quarter. Revenue fell to $50.9 million from $55.2 million. Analysts surveyed by Thomson Financial had expected 27 cents a share, on revenue of $52 million. Shares fell 67 cents, or 7.2%, to $8.77. Elsewhere, Genoptix (GXDX) soared 56.4% after its IPO, which priced 5 million shares at $17 a pop, along with a 750,000-share underwriters' option. Shares of the San Diego-based diagnostic services provider were up $9.59 to $26.59.
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