|Healthcare Review: Cell Therapeutics, Athersys, UnitedHealth Group, VirtualScopics Are Top Movers|
|By Staff and Wire Reports|
|Friday, 05 October 2012 12:52|
The S&P 500 rose for a fifth day and was also on course to close near a five-year high. The index has gained nearly 17 percent so far this year and is on track for its best yearly run since 2009 when stocks rebounded after the financial crisis. Labor Department data showed the jobless rate dropped by 0.3 percentage point in September to 7.8 percent, its lowest since January 2009. Investors focused on a survey of households that pointed to a big surge in hiring.
Following are the notable movers at mid day on Friday.
Cell Therapeutics Inc. (NASDAQ:CTIC) shares plummeted 24.75% to $1.53 after the company today announced the pricing of an underwritten public offering of 60,000 shares of its Series 17 Preferred Stock, offered at a price to the public of $1,000 per share of Series 17 Preferred Stock (the Offering). Each share of Series 17 Preferred Stock is convertible at the option of the holder, at any time, into approximately 714 shares of common stock at a conversion price of $1.40 per share of common stock, for a total of approximately 42.9 million shares of common stock.
The shares of Series 17 Preferred Stock will automatically convert into shares of common stock in certain circumstances.
Athersys, Inc. (NASDAQ:ATHX) stock gained 2.29% to $1.34 after the company announced today it is presenting new research results at the Second Midwest Conference on Stem Cell Biology & Therapy at Oakland University in Rochester, Michigan, that highlight the potential for MultiStem®, its proprietary adult stem cell therapy, to treat multiple sclerosis (MS).
Additionally, Athersys stock had its target price increased by Maxim Group from $3.00 to $6.00 in a report released today. Maxim Group currently has a buy rating on the stock.
UnitedHealth Group Inc. (NYSE:UNH) stock declined 1.55% to $57.07 after the company is in talks to buy some or possibly all of Amil Participacoes SA (AMIL3.BR), a Brazilian insurer and hospital operator. Amil, which has hired Credit Suisse Group AG (CS) to sell a stake in the company, is in talks with other potential bidders, although a deal with UnitedHealth is considered the most likely. A deal could be announced as soon as next week.
VirtualScopics Inc. (NASDAQ:VSCP) stock declined 8.24% to $0.780 after the company announced that for fiscal 2012, it expects revenues to be between $12.5 million and $13 million, compared to the previous expectation of $14 million to $15 million. Analysts are expecting the company to report $14 million for fiscal 2012.
POZEN Inc. (NASDAQ:POZN) shares dropped 0.31% to $6.49 in the early hour. The company, this week, said the US Court of Appeals for the Federal Circuit has upheld a favorable litigation decision passed by US District Court for the Eastern District of Texas. The Texas court had issued a favorable verdict for Pozen on August 5, 2011 in the litigation between Pozen and several generic pharmaceutical companies which had filed Abbreviated New Drug Applications seeking approval from the FDA to market generic copies of Treximet.