Health Care Stocks Trimming Losses But Still Underwater

Most health care stocks were sitting out the day’s advance for stocks, with the NYSE Health Care Index sinking more than 0.2% while shares of health care companies in the S&P 500 were down nearly 0.2% as a group.

In company news, Rigel Pharmaceuticals (RIGL) was higher Thursday, with the immunotherapy company still hanging on to roughly half its rise to a session peak of $4.03 a share after the company priced last night an upsized $60.6 million public offering of 18.1 million shares of its common stock at $3.35 apiece, representing a 7.5% discount to Wednesday’s closing price.

The company originally was expecting to raise about $40 million in gross proceeds from the offering, adding around 6.2 million shares to the deal shortly before pricing. It also issued 30-day options to underwriters participating in the offering to buy up to 2.7 million additional shares to over potential overallotments, which if fully exercised, would boost the gross proceeds by another $9 million.

Net proceeds, after first paying underwriter discounts and other offering expenses, will likely to be used to fund future research and development, commercial preparation and other general corporate purposes, including potential acquisitions of complementary technologies or businesses, although Rigel said it has no transactions in progress at this time.

In other sector news,

(+) APVO, (+36.6%) Piper Jaffray begins analyst coverage with an Overweight stock rating.

(-) DRAD, (-22.1%) Still calculating the financial impact of Philips Healthcare Wednesday terminating its services agreement with the company’s DMS Health Technologies unit, ending its status as an original equipment manufacturer for the health care giant.

Leave a Comment