Equity Briefing: Healthcare Review Sees Centene, Cynosure & XenoPort Among Notable Gainers At Mid Day

The U.S. market slumped on Tuesday as concerns over Spain and Greece weighed on the market and a round of disappointing profit outlooks highlighted the effect of the euro zone debt crisis on corporate earnings. However, there are several healthcare stocks which are making hot moves at mid day on Tuesday. Centene Corp (NYSE:CNC) shares rose 6.50% despite the company posted higher than estimated second quarter loss, while revenue topped analysts' target...

The U.S. market slumped on Tuesday as concerns over Spain and Greece weighed on the market and a round of disappointing profit outlooks highlighted the effect of the euro zone debt crisis on corporate earnings. However, there are several healthcare stocks which are making hot moves at mid day on Tuesday.

Centene Corp (NYSE:CNC) shares rose 6.50% despite the company posted higher than estimated second quarter loss, while revenue topped analysts' target. However, the company forecast it  would return to profit in Q3 and it maintained its FY EPS outlook. The company reported net loss of $35 million, or 68 cents a share, recovered from a year ago loss of $28.4 million, or 54 cents. On an adjusted basis, loss came in at 16 cents a share, missing analysts' forecast of a loss of 11 cents. Revenue jumped 61% to $2.11 billion, fueled by the company's move into new markets, topping Wall Street expectations.

Cynosure, Inc. (NASDAQ:CYNO) is among the top gainers and soared 12.36% after hitting a new 52-week high of $24.84. The company reported net income of $2.7 million, or $0.20 per diluted share, compared with a net loss of $1.3 million, or $0.10 per basic and diluted share, for the second quarter of 2011. Revenues increased 50% to a record $39.6 million in the second quarter of 2012 from $26.3 million for the same period in 2011. 

XenoPort, Inc. (NASDAQ:XNPT) announced that the first subjects have been dosed in a Phase 1, randomized, double-blind, two-period crossover, food effect comparison study of XP23829 in healthy adults. The trial is designed to assess the pharmacokinetics, safety and tolerability of a single dose of XP23829 administered in both fasted and fed conditions. Shares of XNPT jumped 6.30% to $6.41.

Elan Corporation, plc (NYSE:ELN) plunged 14.51% after Elan Corporation announced that Pfizer has issued a top-line result in the first of four Bapineuzumab Phase 3 studies carried out by Pfizer and Janssen AI.  Deutsche Bank reduced the price target for Elan to $12.40.

Zogenix, Inc. (NASDAQ:ZGNX) lost 4% after unveiling plans to offer 32.5M shares of common stock at $2/share. It plans to use proceeds to repay debt, fund development of its Zohydro chronic pain drug and ongoing commercialization of its Sumavel DosePro needle-free delivery system, as well as for working capital and other general corporate purposes.

Shares of Amarin Corporation (NASDAQ:AMRN) were down as low as $14.80 in early trading, despite a note from Roth Capital ahead of this Thursday's PDUFA date in which their analysts maintained expectations that AMR101 will receive full FDA approval for the very high triglyceride population. Between now and the end of the year, Roth Capital believes that Amarin will be taken out or, at the minimum, sign a major global partnership with minimal commercialization expenses booked by Amarin. Various analysts have set price targets as high as $26 for the firm post-approval. Shares have mounted a mild comeback, and appear trying to gain momentume as they head into the afternoon session.

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