Health Care Sector Update for 11/14/2018: PHAS,PETQ,LOGC,CGC,WEED.TO

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Top Health Care Stocks

JNJ -0.17%

PFE -1.23%

ABT +0.03%

MRK -0.67%

AMGN -0.19%

Health care stocks retreated today, including a nearly 0.5% decline for the NYSE Health Care Index in recent trade. Also, shares of health care companies in the S&P 500 were down almost 0.8% as a group while the Nasdaq Biotechnology index was slipping just over 1.7%.

Among health care stocks moving on news:

(-) PhaseBio Pharmaceuticals ( PHAS ) was floundering late in Wednesday trading, sinking almost 14%, despite analysts at Needham & Co initiated coverage of the early-stage biopharmaceutical company with a Buy stock rating and an $18 price target. PhaseBio completed its initial public offering of stock on Oct. 18, pricing 46 million shares of its common stock at $5 apiece, generating $230 million compared with its prior plans to sell 5 million shares at between $12 to $14 each. Needham was one of the underwriters for the company’s IPO.

In other sector news:

(+) LogicBio Therapeutics ( LOGC ) was hanging on to a nearly 1% gain Wednesday afternoon, easing from a 7% mid-morning gain that followed Barclays beginning analyst coverage of the genome editing company with an Overweight investment recommendation and a $24 price target. In a new research note, the Barclay analysts cited the company’s nuclease-free and GeneRide technology, saying they have some unique advantages compared with other gene therapy and gene editing technologies, including potentially safer, more specific and permanent gene integration.

(-) PetIQ ( PETQ ) shares sank more than 5% despite the pet prescription company late Tuesday said its adjusted Q3 profit and sales more than doubled over year-ago levels. Excluding one-time items, PetIQ earned $8.17 million during the July-to-September period compared with $3.93 million during the same quarter last year. The company did not provide per share earnings figures, but based on its 20.4 million shares outstanding, the company produced a $0.40 per share adjusted profit, up from about $0.20 per share last year and crushing the Capital IQ consensus by $0.31 per share. Net sales surged 117% year over year to $131.4 million, beating the consensus on Capital IQ for $125.2 million. PetIQ also raised its forecast for FY18 sales by $15 to $215 million. The Street is expecting $203 million in quarterly sales during the 12 months ending Dec. 31.

(-) Canopy Growth (CGC,WEED.TO) has dropped more than 14% in recent trading after the medical and recreational marijuana seller reported a huge fiscal Q2 net loss despite a more than 32% sales increase over the same quarter last year. Net loss for the three months ended Sept 30 was CND1.52 per share compared with a CND0.01 per share loss during the year-ago period, while net sales rose to CND23.3 million from CND17.6 million last year. Analysts had been expecting a CND0.15 per share net loss on CND23.3 million in sales.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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