Health Care Sector Update for 04/13/2017: DMPI,OCRX,SRNE

Top Health Care Stocks

JNJ +0.02%

PFE +0.12%

MRK -1.87%

ABT -0.65%

AMGN -0.61%

Health care stocks have turned slightly lower in recent trade, with the NYSE Health Care Index falling more than 0.2% while shares of health care companies in the SP 500 were down less than 0.1% as a group.

In company news, DelMar Pharmaceuticals ( DMPI ) slumped Thursday after the Canadian oncology drugmaker today priced a $9 million offering of nearly 2.77 million shares at $3.25 apiece, a 20.1% discount to Wednesday’s closing price.

Investors participating in the deal also received five-year warrants to buy almost 2.1 million additional shares – or three-quarters of a share for each share purchased – at $3.50 apiece.

The company is expecting to pocket around $8 million in net proceeds after paying placement agent fees and other offering costs. It expects to use the new funds for general corporate purposes, including working capital, research and development and other commercial expenditures.

DMPI shares were down nearly 24% at $3.10 each, earlier dropping to a session low of $2.95 a share and stopping only 7 cents shy of their 52-week low.

In other sector news,

(+) OCRX, (+16.8%) Discloses plans to present positive supporting data for its OCR-002 drug candidate to prevent progress of fibrosis in non-alcoholic fatty liver disease at April 20 industry conference.

(-) SRNE, (-34.8%) Prices $47.2 mln public offering of 23.6 million shares at $2 each, a 32.4% discount from Wednesday’s closing price.


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