Briefs: Drug firm's stock nearly doubles after trial
Our wrap-up of important recent news in the field.
Photo of Carolina Pines Regional Medical Center from Google
Here’s a look at some more recent headlines in the world of healthcare finance.
Arena skyrockets
Shares of drug company Arena Pharmaceuticals nearly doubled on Wednesday after the San Diego-based company unveiled strong trial results for one of its autoimmune treatments. Shares in the company closed up more than 76 percent, to close at $5.85 a share after opening the day closer to $3.75 per share on the Nasdaq. The rally continued on Thursday, with the stock price topping $6 in afternoon trading.
Arena said it’s ADP334 drug has good clinical results and could be used to treat ulcerative colitis and Crohn’s disease. (Google Finance)
Hospital unloaded
Tennessee-based Community Health Systems said it divested its ownership of the Carolina Pines Regional Medical Center to Capella Healthcare as of Jan. 1. The sale was required as part of its acquisition of Health Management Associates. (Release)
Healthcare stocks show promise
Stock market analytics firm Morningstar may think that the healthcare market is overvalued, but there are a few the firm thinks show good potential for market growth: Blood treatment firm Baxter, radiotherapy company Elekta and diabetes drug maker Sanofi.
As for the broader healthcare market, Morningstar pointed to sluggish utilization rates at hospitals, despite the signs of economic recovery. Though analysts said that is improving most likely due to the Affordable Care Act. (Report)
Oncology firm scores loan
Novocure, a New Jersey-based oncology company, this week said it has lined up a $100 million term loan to fund operations while the company continues to grow.
Investment fund manager Pharmakon Advisors financed the deal, which gives Novocure $25 million at closing and access to another $75 million through June 30, 2016. Novocure focuses on tumor treating fields therapy, a non-invasive cancer treatment that uses electric fields to interfere with tumor cells. (Release)
