Healthcare Review: Genetic Technologies, Celgene & Synta Pharmaceuticals Are Mid Day Leaders

U.S stocks rebounded sharply on Thursday with the Dow industrials posting triple digit gains, after European Central Bank President Mario Draghi vowed to preserve the euro. This morning, The National Association of Realtors reported its index of pending home resales fell 1.4% in June, illustrating lackluster momentum in the housing market. There are several healthcare stocks which are moving higher as of mid day on Thursday...

U.S stocks rebounded sharply on Thursday with the Dow industrials posting triple digit gains, after European Central Bank President Mario Draghi vowed to preserve the euro. This morning, The National Association of Realtors reported its index of pending home resales fell 1.4% in June, illustrating lackluster momentum in the housing market. There are several healthcare stocks which are moving higher as of mid day on Thursday.

Genetic Technologies Limited (GENE) is one of the biggest gainers and jumped 14% to $3.99 after the company said that it has been awarded a license to sell its BrevaGen breast-cancer test in California, which accounts for 11% of total incidents of the disease in the U.S. Genetic Tech already had authorization to sell BrevaGen in 42 states.

Celgene Corporation (CELG) popped up 3% after the company posted strong growth in profit propelled by higher revenue and lower expenses. The company earned $367.4 million, or 82 cents a share on revenue of $1.37 billion, up from a year ago profit of $279.4 million, or 59 cents a share. Excluding certain costs, the company earned $1.22 a share, ahead of analysts target by 4 cents with revenue of $1.37 billion. Celgene now projects to earn $4.80 and $4.85 per share on an adjusted basis for the full year 2012, up from a previous forecast for $4.70 to $4.80 a share. Analysts forecast, on average, $4.80 per share.

XenoPort, Inc. (XNPT) added 17% as the company announced today the pricing of an underwritten offering of 6,153,846 shares of its common stock at a price to the public of $6.50 per share.

iBio, Inc. (AMEX:IBIO) shares traded as high as $1.70 in early trading but then sold off after investors learned that much of the firm's recent run was fueled by paid stock promoters. The firm announced this morning that they had joined GE Healthcare, the healthcare business of GE (NYSE:GE), in a new global alliance to commercialize plant-based technologies for the manufacture of biopharmaceuticals and vaccines, but no financial information or guidance was issued to help guide the market as to the meaning of the news development. Shares of the company have traded as low as $ 0.65 and as high as $3.45 during the past 52 weeks.

The Spectranetics Corporation (SPNC) is another small cap healthcare stock showing strong buying and rose 10.15% after the company said that it earned $636,000, or $0.02 a share on revenue of $68.3 million in its second quarter, compared to a year ago profit of $584,000, or $0.02 a share on revenue of $62.6 million in 2011. Analysts were estimating a penny in profit and $34.05 in revenue.

Synta Pharmaceuticals Corp. (SNTA) also climbed up 8.33% after the company announced that it has entered into common stock subscription agreements with members of its Board of Directors for the sale of 3,976,702 shares of its common stock in a registered direct offering at a price of $6.49 per share, for gross proceeds of approximately $25.8 million.

Community Health Systems (CYH) is the biggest loser and slumped 10.50% despite the company posted better than estimated second quarter earnings. The company reported EPS of 93 cents on revenue of $3.2 billion in the second quarter. Analysts were expecting 89 cents a share.
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