Health Care Stocks Pare Nearly All of Thursday Losses

Most health care stocks largely sat out the advance for stocks, with the NYSE Health Care Index sinking almost 0.1% while shares of health care companies in the S&P 500 were down less than 0.1% as a group.

In company news, Valeritas Holdings (VLRX) stumbled Thursday after late Wednesday disclosing plans to sell up to 3.35 million shares of its common stock by Aspire Capital Partners, which late last month agreed to buy up to $20 million of the medical device company’s stock at its request over the next 30 months.

Valeritas, which has produced its first commercial device to deliver insulin to diabetes patients through continous subcutaneous infusions, will not receive any direct proceeds when Aspire lets go of some or all of its stock, which could be sold through negotiated transactions or potential offerings. It will, however, pocket $20 million from Aspire as the long-only investment fund completes its obligations under the Sept. 20 stock-purchase pact.

In addition to the Form S-1 document registering the stock issued to Aspire as well as setting the stage for it to eventually cash in on its investment, Valeritas last night also filed an S-3 registration statement for the sale of up to $20 million of its common or preferred stock, warrants, bonds and other securities from time to time.

The company expects to use net proceeds from any future offering for general corporate purposes, including funding its commercial operations along with research and development, engineering and manufacturing activities, repaying outstanding debt or for potential acquisitions.

In other sector news,

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

(-) DRAD, Said it was 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.

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