Laux, Porter, Cavanaugh (212) 829-5484
A pretty miserable day overall in Healthcare. MNTA was a notable exception in the morning after court ruling in their favor versus Sanofi, traded as high as 16.85(+7.5%) but fell $1 from that point by end of day. PDCO(-4.9%) one of the laggards all day after their earnings report. Big cap Biotech weak from the word go even as Dow and S&P put up some positive numbers early(BIIB,AMGN,GILD,CEPH all down 2-3%). Our flows overall leaned only slightly to the sell side.
Hospital sector weak again concerns about volume, HMO pricing presures as well as the possibility of tightening credit spreads which plagued them in 2008/2009.
DRG Index churned sideways as a flight to defensive type names. The indexs recently broke out of a channel to the downside look for further weakness perhaps strength in dollar could be the catalyst. LH had bearish engulfing pattern yesterday appears to be completing a symmetrical triangle b wave which would give it a short term price target of 68. JNJ consolidating in both daily and weekly charts before further slide with a price target of 55/54.
XLV:
28.18;
-.18;
-.63
PPH:
60.45;
-.34;
-.56
DRG:
283.29;
-.97;
-.34%
Leaders:
EXEL AUXL MDT MNTA IPXL EW WPI
Laggards:
NBIX HMA PDCO ISIS UHS MYGN HS ARNA
Biotech/Pharma: CYPB JNJ PFE NABI MNTA
Healthcare Services: RAD HMA BIOS AIRM TOMO ROHI
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