Healthcare Sector Review: Dendreon Corporation Rockets 39%

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Dendreon Corporation (NASDAQ:DNDN): Dendreon resumed trading, giving back most of its gain following the announcement of the sale of its royalty interest in Victrelis for $125M. The sale appears to be a move to raise cash as sales of its prostrate treatment Provenge are running slower than expected.

The shares closed at $10.62, up $3.02, or 39.74%, on the day. Its market capitalization is $1.58 billion.

InterMune, Inc. (NASDAQ:ITMN): Shares of Intermune dip after Credit Suisse cuts its price target nearly in half to $20 from $37, saying there are more questions than answers regarding the company’s launch ramp platforms, and the harder it becomes to quantify variables, the greater the need to discount.

The shares closed at $14.51, up $1.36, or 10.34%, on the day. Its market capitalization is $950.52 million.

Delcath Systems, Inc. (NASDAQ:DCTH): Delcath Systems takes a hit after registering to sell up to $100M in a shelf registration with the SEC, and reportedly saying it may sell shares worth as much as $39.8M through Cowen. The sale would represent a significant dilution to its current 40M share float.

The shares closed at $3.56, up $0.31, or 9.54%, on the day. Its market capitalization is $171.61 million.

LHC Group, Inc. (NASDAQ:LHCG): Shares of home-health firm LHC Group are higher today on better than expected guidance for FY12. Revenue should come in around $640M – $660M, and its EPS expected to be in the range of $1.45 – $1.65, better than Street estimates of $1.42. Separately, Coliseum Capital, a beneficial owner of the company, also recently bought an additional 22K shares.

The shares closed at $13.71, up $1.14, or 9.07%, on the day. Its market capitalization is $257.86 million.

XenoPort, Inc. (NASDAQ:XNPT): GlaxoSmithKline (NYSE:GSK) and XenoPort win FDA approval for their Horizant extended-release tablets, targeted for the treatment of Restless Legs Syndrome in adults.

The shares closed at $4.23, up $0.35, or 9.02%, on the day. Its market capitalization is $149.95 million.

Osiris Therapeutics, Inc. (NASDAQ:OSIR): Shares of Osiris Therapeutics plunge after it says two late-stage trials testing its lead product to treat a rare condition that affects bone marrow transplant patients failed to demonstrate statistical benefit over a placebo.

The shares closed at $4.54, down $0.42, or 8.47%, on the day. Its market capitalization is $149.03 million.

NuVasive, Inc. (NASDAQ:NUVA): NuVasive trails the market after BMO cut the shares to Market Perform. BMO cites headwinds facing the spinal-device maker in the coming year, including a tough market, regulatory hurdles, and ongoing legal concerns.

The shares closed at $11.38, down $0.51, or 4.29%, on the day. Its market capitalization is $480.74 million.

Thoratec Corporation (NASDAQ:THOR): Thoratec trades down after UBS cut the shares to Neutral from Buy on valuation. The firm says the stock may be played out over the near term, as peer competitor Heartware’s (NASDAQ:HTWR) pending launch of HVAD is expected to cut into its heart therapy market share.

The shares closed at $30.40, down $1.22, or 3.86%, on the day. Its market capitalization is $1.82 billion.

STAAR Surgical Company (NASDAQ:STAA): Staar Surgical insiders are buying stock, betting that Staar’s lens implants to correct nearsightedness will gain on the less expensive Lasik treatments and make the company a potential takeover candidate.

The shares closed at $10.29, down $0.38, or 3.56%, on the day. Its market capitalization is $371.43 million.

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