Healthcare Review: Cesca Therapeutics, RTI Surgical, Amedisys, Celgene, Celgene Print
By Staff and Wire Reports   
Thursday, 24 April 2014 13:22
U.S. stocks rose, with the Standard & Poor’s 500 Index near a record, as better-than-forecast earnings from Apple Inc. and Facebook (FB:US) Inc. boosted technology shares. Apple jumped 8.1 percent after selling more iPhones than analysts predicted. Zimmer Holdings Inc. surged 12 percent after it agreed to buy rival orthopedic-device maker Biomet Inc. in a deal valued at $13.4 billion. 3M fell 1.1 percent after profit missed estimates, while Verizon Communications Inc. dropped the most in the Dow Jones Industrial Average on concerns about a shift in revenue. Qualcomm sank 3.4 percent as results fell short of forecasts.

Nano cap Cesca Therapeutics ($KOOL) shows bullish price action with today's up move on a 10x surge in volume. It represents a successful retest of the January 21 breakout when prices popped 111% on massive turnover of 32.9M shares after the company announced positive Phase 1b clinical trial results for its stem cell therapy for critical limb ischemia. The company acquired development partner TotipotentRX shortly thereafter and changed its name from Thermogenesis. Last month, it submitted a pre-IDE information package to the FDA for the product, now called SurgWerks, as the first step in its commercialization efforts in the U.S.Considering its microscopic market cap of $66M, retail investors should insist on thorough due diligence before considering deploying capital.

RTI Surgical ($RTIX) raises its full year revenue guidance to $248M - $253M from $245M - $250M and EPS expectations to $0.07 - $0.09 from $0.06 - $0.08.Q2 guidance calls for revenues of $62M - $63M and EPS of $0.02.Q1 highlights were: Revenues: $60.7M (sports med: $11.4M, surgical specialties: $7.3M, dental: $4.6M).

Despite its disagreement with the DOJ over alleged misconduct, Amedisys ($AMED) finalizes the settlement by agreeing to pay $150M plus interest. $115M plus interest is due by May 2, 2014 and $35M plus interest is due by October 23, 2014.The company charged the settlement costs in Q3 2013.It must also pay ~$3.9M in attorneys fees and expenses of various qui tam relators. The investigation focused on Medicare reimbursement for home health services by certain Amedisys care centers from January 1, 2008 through December 31, 2010.

Celgene ($CELG) has licensed a treatment codenamed GED-0301 for moderate-to-severe Crohns disease and other indications from Dublin-based Nogra Pharma. Celgene will pay $710M upfront, development and regulatory milestones of as much as $815M, and sales milestones of up to $1.05B.GED-0301 "demonstrated striking clinical activity in a phase II trial for Crohns disease," Celgene says, with the company planning to start a Phase III study by the year-end.

Citing short seller Bill Ackman's undisclosed $20M campaign to discredit the company, Herbalife ($HLF) says his efforts are losing credibility. It emphasizes a purported 10-year $3.6M contract to a former HLF executive to act as a whistleblower. $80K has been paid so far. The company says Mr. Ackman's PR team set up the ABC News interview.

"Featured Content" profiles are meant to provide awareness of these companies to investors in the small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. BiomedReports is not paid or compensated by newswires to disseminate or report news and developments about publicly traded companies, but may from time to time receive compensation for advertising, data, analytics and investor relation services from various entities and firms. Full disclosures should be read in the 'About Us Section'.

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