|Healthcare Review: Exelixis, Questcor Pharmaceuticals, Supernus, Eli Lilly & Co, Enzon Pharmaceuticals Are Notable Movers|
|By Staff and Wire Reports|
|Friday, 30 November 2012 14:29|
The government also reported that consumer spending fell in October. Investors have been closely following the talks between the White House and Congress over the "fiscal cliff," a series of sharp government spending cuts and tax increases scheduled to start Jan. 1 unless an agreement is reached to cut the budget deficit. Economists say that those measures, if implemented, could push the U.S. economy back into a recession.
Following are the notable movers at mid day on Friday:
Exelixis, Inc. (NASDAQ:EXEL) shares slumped 7% to $4.86 following yesterday's post-session trading halt, despite receiving approval from both the FDA and the European Medicines Agency for cabozantinib, a treatment for a rare type of thyroid cancer. Part of the reason for the dip can possibly be attributed to the lack of information on the drug going into the decision, plus skittishness following an unexplained cancellation of the FDA's vote on cabozantinib's NDA earlier this month.
Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR) latest bulletin shows no change from its position first taken in September on Acthar. The insurer is still limiting reimbursement of the drug only for the treatment of infantile spasms. AET asserts that the drug's other approved uses are medically unnecessary or unproven. Shares of the company are down 7.53% after Mizuho starts the stock off with a Neutral rating and $28 price target. There's also word Aetna is fixing to slash more coverage of Questcor's Acthar.
Supernus Pharmaceuticals Inc. (NASDAQ:SUPN) plunged 20% after after the drug developer priced a sale of 6 million shares at $8 apiece. The Rockville, Md., company had 24.5 million shares outstanding. Issuing stock can lower the value of current shareholders' stakes.
Eli Lilly & Co. (NYSE:LLY) intends to expand in China, which, says CEO John Lechleiter, "will soon be the second-largest pharmaceutical market in the world." Over 260M Chinese suffer from chronic diseases while healthcare coverage has been expanded to 95% of the population. However, Eli Lilly faces major obstacles, including very slow regulatory approval and poor IP protection.
Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN) added 8% to $7, although off session high of $7.47. Enzon Pharmaceuticals Inc. (ENZN) and Mastech Holdings Inc. (MHH) were among a string of companies to declare special dividends ahead of a potential tax hike in the new year, while Seagate Technology Inc. (STX) will pay its boosted quarterly dividend early.