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!

Wednesday's Health Winners & Losers

Health stocks fell Wednesday, hit by the continuing effects of a bum trial, and a handful of disappointing earnings.

The bright spot was Encysive (ENCY), whose shares more than doubled after Pfizer (PFE) agreed to buy the troubled company for $2.35 a share, or about $195 million. The deal represents a more than 100% premium to Encysive's closing share price Tuesday of $1.08. Shares added $1.20 to $2.27.

Shares of Pfizer, which will gain rights to Encysive's pipeline and pulmonary arterial hypertension drug Thelin, lost 10 cents to $22.47.

On the down side, Onyx (ONXX) lost ground for the second straight day following news that the biotech and partner Bayer AG ended a late-stage trial on their drug Nexavar in lung cancer patients. The stock, which lost more than 20% on Tuesday, sank another $2.35, or 6.9%, to $30.80, on Wednesday.

Onyx contributed to a drop in the Nasdaq biotechnology index, which fell 0.7% to 788.08.

Elsewhere, Inverness Medical Innovations (IMA) plunged 16% even after the company reported better-than-expected fourth-quarter results. Inverness posted a loss of 19 cents a share, compared to a profit of 15 cents a share a year earlier.

But on an adjusted basis, the company said its earnings per share rose to 40 cents from 34 cents a year earlier. Analysts surveyed by Thomson Financial were looking for 38 cents a share, on average.

Inverness shares fell $7.04 to $36.83. Matria Healthcare (MATR) -- which agreed last month to be acquired by Inverness for $900 million -- shed $1.94, or 6.6%, to $27.45.

Medical-device company Xtent (XTNT) also declined on its fourth-quarter report. The company posted a loss of $11.9 million, or 52 cents a share, based on 22.8 million weighted average shares outstanding. In the year-ago quarter the company had a loss of $7.2 million, or $2.46 a share, based on 2.9 million weighted average shares outstanding. Its stock gave up $1.40 to $8.11.

Kindred Healthcare (KND) shares tumbled on a disappointing first-quarter forecast. The health care services company said after the bell Tuesday that its fourth-quarter profit fell to $16.3 million, or 43 cents a share, from $22.1 million, or 56 cents a share, in the year-earlier period.

Excluding items, Kindred Healthcare did surpass the Thomson Financial average analyst target by two cents, earning 51 cents a share. For the first quarter, however, the company forecast earnings of 22 cents to 27 cents a share, well below analysts' target of 39 cents. Shares declined $2.58, or 10%, to $23.25.

One stock higher on earnings was Cyberonics (CYBX), which soared 17% after the device maker posted a narrower-than-expected quarterly loss and announcing plans to buy back up to 1 million shares. The company reported a loss of $1 million, or 4 cents a share, narrowed from a loss of $19.4 million, or 76 cents a share, a year earlier.

Analysts polled by Thomson Financial were expecting a loss of 9 cents a share. The company's sales declined, but a 12% cut in staff helped to push down operating expenses. Shares of Cyberonics rose $1.68 to $11.41.

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!
DOW 17,121.92 +70.19 0.41%
S&P 500 1,985.11 +11.48 0.58%
NASDAQ 4,461.8350 +37.1310 0.84%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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