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Health Care Sector Update for 08/03/2020: ADXS,VAR,TYME,LEGN

Health care stocks still were outpacing the broader Monday markets, with the NYSE Health Care Index rising 1.0% this afternoon while the SPDR Health Care Select Sector ETF was up 1.1%.

The Nasdaq Biotechnology index was climbing 3.2%.

In company news, Advaxis (ADXS) declined 1% after the immuno-therapies company Monday said Lincoln Park Capital Fund paid $2 million to acquire more than 3.5 million of its common shares priced at 57 each as part of a broader purchase agreement with the institutional investors for up to $20 million of its stock. Advaxis has the right to sell to LPC up to $18 million more of its shares to Lincoln Park at prevailing market prices over the next 36 months, subject to certain conditions.

Varian Medical Systems (VAR) jumped almost 22% after the medical device company agreed to a $16.4 billion, all-cash buyout offer from Siemens Healthineers. Under the terms of the proposed transaction, investors will receive $177.50 in cash for each of their Varian shares, representing a 34.8% premium over Friday’s closing price.

Tyme Technologies (TYME) rose 13% on Monday after the US Food and Drug Administration designated its SM-88 drug candidate as an orphan drug to treat patients with pancreatic cancer. SM-88 currently is in multiple late-stage clinical trials, the company said.

To the downside, Legend Biotech (LEGN) fell 4.8% after the oncology drugmaker said it expects a net loss from ongoing operations in a range of $89 million to $103 million for the six months ended June 30, including $96.5 million to $111.8 million in research and development expenses. The upcoming results also will include an $80 million non-cash charge reflecting the drop in the fair value of its series A preferred stock following the automatic conversion of those shares on June 8.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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