Health Care Sector Update for 02/27/2018: PRGO,MNK,AMRN

Top Health Care Stocks

JNJ +0.18%

PFE -0.40%

ABT +0.20%

MRK -1.36%

AMGN -0.64%

Health care stocks were paring some of their recent declines, including a slightly more than 0.4% decline for the NYSE Health Care Index in recent trading. Shares of health care companies in the S&P 500 were down almost 0.4% as a group while the Nasdaq Biotechnology index was dropping nearly 0.7% Tuesday.

Among health care stocks moving on news:

– Perrigo ( PRGO ) retreated Tuesday, sinking over 7% to a session low of $81.74 a share, after the Irish generic and over-the-counter drugnaker reported preliminary FY17 financial results but also delayed the release of its complete earnings as well as the accompanying conference call with analysts and investors previously set for Tuesday. The company produced consolidated net sales of $4.9 billion during the 12 months ended Dec. 31, down 6.3% from the $5.3 billion in sales during the prior-year period. Analysts, on average, were expecting around $4.9 billion in FY17 sales. Perrigo also said it needs more time to complete its final income tax review procedures resulting for reconciliations and specific non-cash items, adding it will continue under Quiet Period rules until it completes its Q4 and FY17 financial statements.

In other sector news:

+ Mallinckrodt ( MNK ) rallied Tuesday, racing nearly 36% higher to an intra-day peak of $21.96 a share, after the UK-based pharmaceuticals manufacturer reported better-than-expected Q4 financial results for fiscal Q4 while also providing a mixed FY18 outlook. Excluding one-time items, the company earned $2.01 per share, exceeding the Capital IQ consensus by $0.32 per share. Net sales fell 4.5% year-over-year to $792.3 million but also beat the $769.9 million analyst consensus. For FY18, Mallinckrodt is projecting adjusted per-share earnings between $6.00 to $6.50 following a 3% to 6% increase over its 3.22 billion in annual sales last year, equal to a range of $3.32 billion to $3.42 billion. Analysts are modelling a $7.14 per share adjusted profit on $3.18 billion in revenue.

– Amarin ( AMRN ) dropped almost 6% to a session low of $3.48 a share after Tuesday reporting a Q4 net loss of $0.08 per share, improving modestly on a non-GAAP net loss of $0.10 per share during the year-ago period but still doubling up the Capital IQ consensus expecting a $0.04 per share net loss, excluding one-time items. Revenue for the biopharmaceutical company rose to $53.9 million during the three months ended Dec. 31 from $38.7 million last year and also missed the $52.7 million Street view. Amarin reiterated its forecast expecting between $45 million to $48 million in Q1 net product revenue for Q1 and rising to at least $55 million during Q2. Analysts, on average, are expecting the company to generate about $46.7 million in revenue during the current quarter ending March 31.

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