|Healthcare Review: Endologix, Endo Health Solutions, Compugen, Questcor, Ampio Pharmaceuticals|
|By Staff and Wire Reports|
|Friday, 28 February 2014 15:20|
Endologix ($ELGX) shares plummet after the medical device maker reports mixed Q4 results and forecasts FY 2014 revenues below analyst consensus due to slow growth in U.S. device sales. ELGX sees FY 2014 GAAP EPS loss of $0.44-$0.31 vs. analyst consensus estimate of flat earnings, and revenues of $146M-$152M vs. $161M consensus. Oppenheimer downgrades shares to Perform from Outperform and lowers its price target to $16 from $20 on ELGX's disappointing 6%-10% 2014 U.S. growth forecast following 18% growth in 2013; the firm still sees Nellix as a long-term growth driver, but there's little to offset near-term U.S. uncertainty with no Nellix data read-outs expected this year and EU constraints not expected to be alleviated until Q4.
Endo Health Solutions ($ENDP) shares sink on widening Q4 losses after the drug maker warned of a significant writedown and high litigation expenses earlier this month. Revenue plunged 27% Y/Y, and the company issued a weak FY 2014 outlook, seeing EPS of $3.40-$3.65 vs. $3.93 analyst consensus estimate, and revenues of $2.50B-$2.62B vs. $2.56B consensus.
Compugen ($CGEN) plunges after pricing its public offering of 6M shares at $10.50/share, a discount of 26% to yesterday's $14.20 closing price. Compugen shares ended last week at $11.60 but surged this week to challenge decade highs; the Israel-based biotech will raise nearly $60M in the offering, but at a punishing price to y new shareholders who bought into this week’s strength.
The FDA says it's reviewing the lab tests of Questcor's ($QCOR) Acthar gel discussed by Citron Research in a 24-page report published yesterday. Citron claimed the tests showed almost no detectable amounts of the hormone ACTH, which Questcor has said it believes is the primary active ingredient within Acthar.
Ampio Pharmaceuticals Inc. (NYSEMKT:AMPE) The 8.5M share secondary offering is priced at $7 per share for gross proceeds of $59.5M, and net proceeds expected to be about $55M. This doesn't include the greenshoe to bookrunners Citi and Jefferies of 1.275M shares.