were among the worst-performing health-related stocks Friday, falling 11.2% after the company said it would restate results for its last three quarters because of a software error.
The home health care services company said that it expects the software error to lower fiscal 2004 earnings to $4.5 million, or 9 cents a share, on sales of $101.7 million. Previously, the company reported earnings of $5.3 million, or 11 cents a share, on sales of $102.5 million.
The company expects to lower fiscal first-quarter earnings to $1.1 million, or 2 cents a share, on sales of $26.1 million. Previously, the company posted first-quarter earnings of $1.6 million, or 3 cents a share, on sales of $26.8 million. Continuecare expects second-quarter earnings to fall to $2 million, or 4 cents a share, on sales of $27 million. Previously, it reported earnings of $2.5 million, or 5 cents a share, on sales of $27.5 million. "Any error of this type is unacceptable," the company said. "This error is particularly regrettable because it may obscure what is otherwise a picture of significant improvements in our core business over the last twelve to eighteen months," it continued.
Looking ahead, Continuecare previewed third-quarter earnings of 2 cents a share on sales of $29.3 million. During last year's third quarter, the company earned 3 cents a share on sales of $25.9 million. Shares traded down 35 cents to $2.79.
traded lower after the health insurer said it would acquire privately held
for about $400 million in cash. The transaction, which is expected to close during the second quarter of 2005, will be accretive to Aetna within 12 months of closing. Aetna said it plans to operate ActiveHealth as a branded, standalone business. "This acquisition positions Aetna to enhance the scope of our medical cost, quality and patient-safety capabilities, while increasing our ability to serve new market segments," Aetna said. Shares traded down $1.81, or 2.4%, to $74.
fell 5.2% after the company said results from its extended phase II trial of Furosemide GR, which is used to treat edema in congestive heart failure patients, were disappointing. In particular, the company said that it was disappointed that the data did not show a consistent improvement in urinary urgency and frequency as compared with a phase I trial using healthy volunteers. Depomed plans to reevaluate the program, but said resources that were dedicated to Furosemide GR development will now be reallocated to grow its pipeline with new programs. Resources will also be used to support other late-stage programs as well. Shares traded down 23 cents to $4.17.
Other health care volume movers included
, down 51 cents to $7.28;
, up 23 cents to $27.86;
, up 32 cents to $62.12;
, down 18 cents to $33.46;
Johnson & Johnson
, down 22 cents to $67.10;
, down 9 cents to $25.30;
, down 29 cents to $72.70;
, down 12 cents to $20.25;
Teva Pharmaceutical Industries
, up 15 cents to $32.58.