Biotech and pharma stocks were rising in line with the broader markets on Tuesday amid earnings and staff slashings.
First, with a little bit of everything, biopharmaceutical company
shares were down 13 cents, or 4.6%, at $2.68. Per the recent quarter, the company said its net loss widened to 49 cents a share from 29 cents a share a year prior. Revenue fell to $177,000 from $2.1 million a year earlier, due to lower revenue from collaborations. Along with earnings, Acadia said it will cut its workforce by roughly half as part of a restructuring effort to focus on developing its four most advanced product candidates.
Separately, Acadia said it entered into a Committed Equity Financing Facility with Kingsbridge Capital Limited for up to $60 million of capital during the next three years through the purchase of newly issued shares of Acadia's stock.
Elsewhere, biopharmaceutical company
( PCOP) said it would reduce its workforce by roughly 40% immediately, in addition to a 15% reduction announced in May. Its shares were up 10 cents, or 3.51%, at $2.95.
Returning to earnings, medical device company
got a $1.47, or 14.6% boost to $11.56 on Tuesday. The company said that it earned a nickel a share in the recent quarter on revenue that rose 4% year over year to $24.8 million. Analysts surveyed by Thomson Reuters were looking for two cents a share on revenue of $23.5 million.
said it turned a profit of $3.2 million, or 6 cents a share, from a year ago net loss of $12.9 million, or 25 cents a share. Revenue, which included a $2.5 million milestone and $5 million of amortization of deferred revenue on termination of a co-promotion with
( SGP), rose 74% to $36 million.
The company said Tuesday that it expects to report a significantly reduced net loss of less than $12.5 million for 2008, vs. a net loss of $44.3 million in the prior year.
Then pharmaceutical company
said Monday post market close that it earned 6 cents a share, vs. a loss of 11 cents a share a year prior, on revenue of $25.3 million, up from $4.1 million. The increases were due primarily to the recognition of $20.9 million in deferred license revenue from the sale of Evamist to K-V Pharmaceutical in 2007.
On Tuesday, Vivus said it entered into agreements with a group of institutional investors to sell 8,365,508 shares of common stock for $7.77 a share in a registered direct offering. The company expects proceeds of roughly $65 million before expenses to go toward general corporate purposes, and fund clinical trials, including the advancement of the clinical program for obesity and diabetes treatment Qnexa.
Vivus shares rose 91 cents, or 10.9%, to $9.25 on Tuesday despite a downgrade by RBC Capital markets to sector perform from outperform.
Acadia, Santarus and Vivus are all components of the Nasdaq biotechnology index, which was up 13.18, or 1.5%, at 915.88. The Amex pharmaceutical index, was slightly more zealous, rising 2.4% to 315.11.