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
TheStreet Open House

Tuesday's Health Winners & Losers

Biotech stocks were mostly higher Tuesday, as a buyout in the space and general positive sentiment outweighed several negative earnings reports.

CollaGenex (CGPI) surged after Galderma Pharma agreed to buy the company for $420 million. Galderma will pay $16.60 a share, a 30% premium to the stock's Monday closing price. The deal is expected to close before the end of the second quarter.

CollaGenex shares surged $3.53, or 28%, to $16.33. The stock was among the top movers of the Nasdaq biotechnology index, which was up 16.74, or 2.1%, to 806.83.

Also up was hospital owner Tenet Healthcare (THC), which posted a sharply narrowed fourth-quarter loss . The company reported a loss of $75 million, or 16 cents a share, narrowed from $386 million, or 82 cents a share in the year-ago period. Excluding items, the company would've reported a loss of 2 cents a share. Analysts polled by Thomson Financial expected a los of 3 cents a share.

The company also posted improved hospital admissions and offered a stronger-than-expected guidance. Shares advanced 53 cents, or 12.4%, to $4.81.

Heading the opposite direction, Healthways (HWAY) plummeted 34% after the health care programs company scaled back its estimates for 2008. The company now expects earnings of $1.50 to $1.55 a share, on revenue of $720 million to $740 million. Healthways had previously predicted a profit of $1.77 to $1.86 a share and revenue of $782 million to $815 million.

The cut is due to slower-than-projected enrollment in a new health support program, the company said, based on issues with one large health plan customer and the expectation that two previously anticipated contracts will not materialize during this fiscal year.

Friedman Billings lowered its price target for Healthways to $45 from $65 following the company's announcement. Shares fell $14.36 to $30.99.

Human Genome Sciences (HGSI) shares fell 9% after the company reported a steeper-than-expected quarterly loss. The biotech outfit posted a loss of $92.9 million, or 69 cents a share, compared with a loss of $66.9 million, or 50 cents a share, a year earlier. The loss in the recent quarter included $16.9 million, or 13 cents a share, in expenses related to the licensing and collaboration agreement with Aegera Therapeutics.

Revenue rose 25% to $12.5 million from $10 million. Analysts polled by Thomson Financial expected a loss of 49 cents a share on revenue of $11.4 million.

Looking ahead, Human Genome Sciences expects full-year revenue of $160 million or higher, in line with analysts expectations. Shares were down 61 cents to $5.91.

Shares of Natus Medical (BABY) also were hurting after the company's fourth-quarter report. The maker of medical products for babies reported earnings of $2.8 million, or 12 cents a share, up from $512,000, or 2 cents a share, in the prior-year period.

Excluding acquisition-related charges, Natus' profit was $3.8 million, or 17 cents a share, compared with 2.9 million, or 13 cents a share, in the year-ago quarter. Revenue climbed 19% to $34.2 million. Analysts anticipated earnings of 18 cents a share on revenue of $33.8 million. Shares of Natus lost 63 cents, or 3.3%, to $18.55.

Elsewhere, Onyx Pharmaceuticals (ONXX) shares slipped after the drugmaker said that Hollings Renton will officially step down as president, CEO and chairman at the end of next month. Renton, who announced in October that he planned to retire, will be replaced by N. Anthony Coles the current CEO of NPS Pharmaceuticals (NPSP), effective March 31.

Onyx shares gave up 99 cents, or 3.3%, to 29.01, and NPS shares dropped 9 cents, or 2.2%, to $3.98.

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 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

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