Healthcare Review: Horizon Pharma, Corcept Therapeutics, RadNet, Wright Medical Group, Merge Healthcare Print E-mail
By Staff and Wire Reports   
Friday, 09 August 2013 13:46
U.S. stocks dipped Friday morning, the capstone to a disappointing week shaped by unimpressive earnings. Trading volume was light, typical of an August Friday, and there was little economic news to move the market. Wholesale inventories were the only major economic gauge that the government released Friday. It tends to be watched less closely than other indicators like the unemployment rate or retail sales, but in a vacuum of other news, investors reacted. Stock indexes darted between the tiniest of gains and losses in the early morning, then turned decisively downward after the government reported at 10 a.m. that U.S. wholesalers cut their stockpiles for a third straight month, an indication that they're uncertain about future demand, even as sales increased.

Horizon Pharma Inc. (NASDAQ:HZNP) slips today, despite reporting a solid Q2.Gross and net sales rose 64% and 34% respectively Q/Q.Cash and cash equivalents as of June 30 total $69.3M, versus $81.1M at the end of March.Total DUEXIS pills dispensed in Q2 increased 9.3% versus Q1, as a result of longer initial prescriptions and a 3.7% Q/Q increase in refill rates.Gross-to-net sales deduction for DUEXIS was 33.1% versus 20.6% in Q1.

Corcept Therapeutics Incorporated (NASDAQ:CORT) slips after posting a mixed Q2, reporting an EPS loss that came in better than estimates but missing on its top line revenue number.Continues to enroll patients in its Phase 3 study of of mifepristone, Korlym's active ingredient, for the treatment of psychotic depression. Results are expected to be released in Q314.Cash balance as of June 30 was $72.2M, as compared to $93M at December 31, 2012, reflecting approximately $20.8M spent on operations during H113.Janney Montgomery, Credit Suisse and Ladenbug Thalmann all downgraded the shares to Neutral on the back of the results.Ladenburg cites a slow Korlym commercial launch and the lack of strong confidence about future commercial prospects as reasons for the downgrade.

RadNet Inc. (NASDAQ:RDNT) gains after its Q2 easily topped estimates this morning.Overall volume +7.8% Y/Y; MRI volume +10.7%, CT volume -0.6% and PET/CT volume -2.4%.Overall same-center volume -0.3% over the prior year's same quarter; MRI volume +0.3%, CT volume -6.3% and PET/CT volume -5.9%.For 2013, the company reaffirms its revenue guidance of $700M - $730M.

Wright Medical Group Inc. (NASDAQ:WMGI) takes a hit today after the FDA issues a "not-approvable letter" for its Augment Bone Graft, noting problems with the clinical study.The device, which is designed as an alternative to autograft in orthopedic surgeries, involves the use of tissue from another part of a patient's body.The agency said that the study enrolled people who were predominantly low risk, and may not have needed the procedures.Additionally, it was unsure whether a similar result might have been achieved without any graft material.It concluded that it may be necessary to perform a new clinical study, with a well-defined high-risk population.

Merge Healthcare Inc. (NASDAQ:MRGE) is in free-fall, after releasing disappointing Q2 results.The company attributes its results to "continued reluctance amongst large health systems to move forward with enterprise purchases."Merge also announces the resignation of CEO Jeffery Surges; he will be replaced by Justin Dearborn, who has previously served as Merge's CEO and CFO, and most recently as President and CEO of Merge's DNA unit.

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