Healthcare Review: Synthetic Biologics, Herbalife, Cynosure, Targacept, Galectin Therapeutics Print E-mail
By Staff and Wire Reports   
Tuesday, 29 July 2014 15:01
U.S. stocks mostly fell on Tuesday as a weak outlook from UPS weighed on sentiment and pressured transportation stocks, though other corporate results capped losses in equities. United Parcel Service shares fell 3.1 percent to $99.47 after the world's biggest courier company slashed its earnings forecast for the year due to spending to boost capacity. It also reported earnings that were below expectations.

The biotech sector's up move notwithstanding, nano cap Synthetic Biologics ($SYN) pops on a 3x surge in volume on no apparent news. The stock is trying to recover from its late April plunge after it reported results from a Phase 2 clinical trial evaluating Trimesta (oral estriol) as an adjunctive treatment for relapse-remitting multiple sclerosis. The decrease in annualized relapse rate was statistically significant at 12 months but not at 24 months. The stock quickly sold off, dropping 60% from its April 28 close of $2.91 to a low of $1.16 on May 14.

Herbalife ($HLF) CEO Michael Johnson spent a lot of time emphasizing the health benefits of the company's products, specifically the obesity-fighting benefits. He said that focusing on "wellness" and "fitness" will be the growth drivers going forward. It has invigorated the U.K. market, for example, by attracting a younger demographic into Nutrition Clubs.

Cynosure ($CYNO) Q2 results: Revenues: $72.6M (+44.9%); Operating Expenses: $34.3M (-19.1%); Operating Income: $6.4M (+143.7%); Net Income: $4.6M (+151.1%); EPS: $0.20 (+137.0%); Quick Assets: $102.3M (-15.0%).

Shares of Targacept (NASDAQ:TRGT) are down 24% premarket on modest volume. Yesterday, the company announced that it was pulling out of a development program for bladder cancer after its drug candidate, TC-5214 failed to achieve one of its primary endpoints in a Phase 2b clinical trial.

Shares of Galectin Therapeutics (NASDAQ:GALT) crater 46% premarket on robust volume in response to the company's webcast this morning. It was presenting data for its galactin inhibitor, GR-MD-02, as a treatment for fatty liver disease (NASH). Apparently, Slide 20 shows data that it has no effect on Galectin 3.




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