Cantor Morning News | Healthcare

Arena Pharma a name to watch running up to a 52 week high of $8.00, 6 weeks before their FDA Advisory Panel meeting on weight management drug Lorcaserin. JAZZ the only real notable biotech w/ an August FDA Panel meeting on their drug to treat fibromyalgia. (scheduled for August 20).

SP 500 futures 220 m/a 1113. 1130 area should be resistance being the 61.8 retrace of the sell off since April. Multiple bullish engulfing patterns on FRI ones to highlight ABC DGX HLS HMA KCI VRTX XRAY.

Active Names

Biotech/Pharma: BIOS ARNA CHDX OREX WCRX

Healthcare Services: BKD MCK TMO XRAY

Restaurants/Publishing/Retail: IPG

Earnings

LPNT LifePoint Hospitals reports Q2 EPS 69c vs. consensus of 62c - Reports Q2 revenue $790.6M vs. consensus of $782.68M. Raises FY10 EPS view to $2.65-$2.90 from $2.50-$2.80 - Consensus is $2.75.

CRL Charles River Labs lowers FY10 EPS guidance to $1.90-$2 from $2.20-$2.40 - Consensus is $2.19.

HLS HealthSouth Lifts FY10 Adj. EPS From Cont. Guidance Range To $1.66 - $1.74 From Prior View Of $1.60 - $1.70. Reports Q2 diluted EPS 44c vs. consensus of 43c - Reports Q2 revenue $496.9M vs. consensus of $505.51M.

HSIC Henry Schein .90c vs .86c. Revs $1.85B vs $1.81B.

HUM Humana Company reports revenues of $8.65B vs Reuters $8.59B. Guides Q3 EPS to $1.65-$1.75 vs Reuters $1.42. Guides full year EPS to $5.65-$5.75, above prior $5.55-$5.65, vs Reuters $5.81; guides revenues to $33.50-$34.50B vs Reuters $33.90B. The guidance includes negative impact of following expenses in 2H10: ($0.19)-($0.28) related to the anticipated loss of the TRICARE South Region contract; ($0.28) in newly projected expenses for Medicare; and ($0.14) in incremental policy reserves for individual major medical claims.

After Close

BKD (.10c) 548M

HOLX .29c 417.6M

TXRH .21c 252M

WMGI .14c 128.8M

Sector News, M&A, Capital Raises

Republicans are preparing to promise that they will refuse to authorize necessary funds for parts of the Democrats' health care law if voters elevate the GOP to majority status in Congress, according to Politico. http://www.politico.com/news/stories/0810/40536.html

LXRX Lexicon Pharma announces reacquisition of all rights to Symphony Icon programs

Centers for Medicare Services CMS finalizes payment rate changes for inpatient stays in acute care and long-term care hospitals in f11

GNOM Complete Genomics files $86.25M IPO through UBS and Jefferies

ETRM EnteroMedics receives conditional approval for its Investigational Device Exemption application with the FDA

Research Away

UHS Universal Health upgraded to Outperform from Sector Perform at RBC Capital - Target to $43 from $36.

ARNA Arena Pharma downgraded to Neutral from Overweight at JP Morgan

CVH Coventry Health upgraded to Outperform from Market Perform at Leerink

MCK McKesson pullback a buying opportunity, says Auriga - Auriga lowered its target for McKesson shares to $75 from $80 but views the recent sell-off in the name as a buying opportunity. The firm reiterates a Buy rating on the stock.

GENZ Citigroup downgraded Genzyme on valuation as it believes an acquisition by (SNY) is likely in the $74-$77 per share price range. The firm recommends taking some profits in Genzyme shares at current levels but raised its price target to $76 from $64.

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