Small-cap stocks outperformed the major indices Tuesday, once again on the power of positive news out of small health-care names like Advancis Pharmaceutical ( AVNC). Shares of the Maryland drugmaker surged 13.6% to $3.10 after the Food and Drug Administration accepted a resubmitted new-drug application for its proposed strep-throat treatment, Amoxicillin Pulsys. The FDA initially rejected the application in February, asking for more information on the company's planned manufacturing processes. France-based Edap ( EDAP), a medical-equipment maker, jumped 14% to $6.84 after saying it will fast-track its ongoing U.S. clinical trial for Ablatherm-HIFU (high-intensity focused ultrasound), a proposed noninvasive treatment for prostate cancer. Meanwhile, Jeffries started coverage of RadNet ( RDNT) with a buy rating. Shares of the Los Angeles-based company, a purveyor of magnetic-resonance imaging and other imaging services, climbed 10% to $6.54. In earnings news, California's House of Taylor Jewelry ( HOTJ) vaulted 18.3% to $2 after reporting sharply higher first-quarter revenue of $4.5 million, compared with $1.4 million a year ago. Its per-share loss was 2 cents wider at 8 cents, but this includes a far higher interest expense vs. last year. Gambling Partners International ( GPIC) shares leapt 15.3% to $11.75 after the Las Vegas-based gambling-equipment maker reported a loss of just 18 cents a share. Analysts sought a 22-cent per-share loss.
On the flip side, Texas-based Forgent Networks ( FORG), which develops and licenses intellectual property, plummeted 26.8% to 93 cents after EchoStar Communications ( DISH) announced late Monday that Forgent lost the patent-infringement suit it had filed against EchoStar regarding a digital-video-recorder patent. Also among the small-cap laggards was Streamline Health Solutions ( STRM). The Cincinnati-based health-care information-technology company widened its loss to a nickel a share from a penny last year in the quarter ended April 30. The sole analyst, per Thomson Financial, was looking for a 6-cent profit. Shares lost 14.8% to $4.19. More broadly, the Russell 2000 shot up 0.8% to 839.93, and the S&P SmallCap 600 was 0.7% higher at 436.31.