Health Care Sector Update for 08/15/2017: TEAR,OTIC,CGIX

Top Health Care Stocks

JNJ +0.03%

PFE +0.36%

ABT -0.31%

MRK +0.07%

AMGN -0.30%

Health care stocks were putting up narrow gains Tuesday, with the NYSE Health Care Index climbing more than 0.1% while shares of health care companies in the S&P 500 were up slightly less than 0.1% as a group.

In company news, in-vitro diagnostics company TearLab ( TEAR ) declined Tuesday, with its stock falling more than 22% to a session low of $1.69 a share after disclosing plans Monday night to tap the capital markets for fresh funding before the end of the year.

TearLab did not provide any details about the proposed offering, including its size, the type of securities it may sell or identifying the potential buyers. The upcoming deal also was working Tuesday to obscure the company’s smaller-than-expected Q2 net loss and improved revenue compared with year-ago levels reported late Monday.

The company had a net loss of $0.68 per share during the three months ended June 30, narrowing a $0.97 per share loss during the same quarter last year and also beating the Capital IQ consensus expecting a quarterly net loss of $0.77 per share. Revenue grew 1.4% to $7.0 million, also exceeding the analyst mean expecting $6.86 million in revenue during the April-to-June reporting period.

In other sector news,

(+) OTIC, (+13.1%) FDA accepts the company’s supplemental new drug application for its Otiprio drug candidate to treat acute inflammation of the ear canal and sets a March 2, 2018, deadline for a decision on the application.

(-) CGIX, (-19.2%) Acquires vivoPharm Pty for $12 mln in cash and stock, paying $1.2 mln in cash and issuing $10.8 mln of its shares for the cancer-drug company. The buyers also arranges a $16 mln, two-year equity funding deal, drawing down an initial $3 mln tranche.


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