Health stocks that drew analyst attention were on the move Wednesday, but on the whole, the sector was staying close to the flat line. Oppenheimer analyst Sean Lavin initiated coverage on Cardium Therapeutics ( CXM) with a buy rating and sparked a bit of investor enthusiasm, driving the stock up 34 cents, or 10.2%, to $2.71. He gave the stock a 12-month price target of $5. "We believe Cardium has three potentially revolutionizing products in three distinct areas of medicine," Lavin wrote in a research report. The company has an FDA-approved product for fever control, stroke, heart attacks, cardiac ischemia, neurosurgery and cardiothoracic surgery. Another product is in late-stage clinical trials for patients with heart ischemia, and a third is in midstage testing to treat diabetic and pressure ulcers. Elsewhere, Orexigen Therapeutics ( OREX) climbed $1.02, or 7.1%, to $14.38 after a JMP Securities analyst raised his rating for the stock to strong buy from market outperform on the potential for the company's developmental obesity drugs. On the other hand, Oppenheimer analyst Kevin DeGeeter downgraded Omrix Biopharmaceuticals ( OMRI), partly because he's skeptical about the ability of the company's thrombin product to take significant market share.
Stocks soar as the gross domestic product rises at an annualized rate of 3.5% in the third quarter and continuing jobless claims fall. Gregg Greenberg recaps the action in The Real Story video (above).