This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Thursday's Health Winners & Losers

Health indices dipped back into the red Thursday, as some stocks in the sector weathered FDA and legal concerns.

Baxter International (BAX) fell 2.5% on news of an FDA alert regarding its blood thinner heparin and an investigation into related manufacturing facilities.

The agency has warned doctors and patients earlier this week that there have been 350 reports of side effects, including 4 deaths, so far this year. It's investigating a Chinese facility and also a New Jersey facility.

In January, Baxter recalled nine lots of the blood thinner in light of reports of allergic reactions. The company said on Monday that it will halt manufacturing of the multiple-dose vials while it searches for the cause of the increase in adverse reactions. Shares of Baxter declined $1.54 to $60.32.

At ease and heading the other direction Thursday, Cephalon (CEPH) gained $3.98, or 6.9%, to $61.40. The Federal Trade Commission said it would sue Cephalon on Wednesday, alleging that the company illegally blocked the sale of generic versions of its Provigil drug by paying potential competitors to hold off on sales. But, analysts and investors seemed free of short-term worry on Thursday.

Cowen and Co. analyst Eric Schmidt reaffirmed an outperform rating for the stock and Jefferies & Co. analyst David Windley reaffirmed buy rating.

Elsewhere, contact solution recalls and acquisition-related charges resulted in a wider fourth quarter loss for Advanced Medical Optics (EYE), but shares advanced on word of a cost-cutting plan. The stock jumped saw shares rise $2.03, or 9.6%, to $23.29.

Advanced Medical Optics reported a quarterly loss of $12.3 million, or 20 cents a share, widened from a loss of $7.6 million, or 13 cents a share, in the previous year. Revenue rose 25% to $304.6 million from $243.6 million.

Analysts polled by Thomson Financial expected an adjusted loss of 6 cents a share, on revenue of $287.4 million.

The company said that to lower costs its cutting 150 jobs, or roughly 4% of its workforce, and consolidating operations. The company expects the moves to cost between $25 million and $30 million in 2008, resulting in savings between $4 million and $7 million in 2008, and $10 million to $12 million annually thereafter.

Advanced Medical Optics also cut its 2008 earnings outlook, now expecting adjusted earnings between $1.25 and $1.45 a share, down from a previous outlook of $1.55 to $1.75 a share. It sees revenue of between $1.22 and $1.24 billion, vs. its prior guidance of $1.23 billion and $1.25 billion. Analysts had predicted a full-year profit of $1.37 a share on revenue of $1.22 billion.

Elsewhere in earnings, specialty pharmaceutical company Angiotech (ANPI) slid after reporting worse-than-expected fourth-quarter results. The copmany reported an adjusted loss from continuing operations of $7.5 million, or 9 cents a share, compared with a profit of $12 million, or 14 cents a share, a year earlier.

Revenue, was $70.7 million as adjusted for non-recurring items and $71.4 million on a GAAP basis, compared to $83.2 million and 93.2 million in 2006, respectively.

Analysts polled by Thomson Financial forecast a loss of 3 cents a share for the quarter on revenue of $71.1 million.

Shares dropped 37 cents, or 11%, to $3.03.

Meanwhile, Clinical Data (CLDA) advanced nearly 5% after the company posted improved fourth-quarter results. The company reported a loss of $4.4 million, or 21 cents a share, narrowed from a loss of $6.3 million, or 43 cents a share, in the year-earlier quarter. Revenue rose 31% to $10.5 million on strong sales growth in PGxHealth predictive tests.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs