Healthcare review: Halozyme Therapeutics & Arena Jumps, AEterna Zentaris Falls

U.S. stocks are hovering between small gains and losses on Wednesday as investors sifted through an uneven series of economic reports that gave little reason for either bulls or bears to come off the sidelines. Blue-chips lagged. Several healthcare stocks are making notable news at mid day on Wednesday:

AEterna Zentaris Inc. AEZS shares fell 9.37% to $0.462 after the company posted second-quarter net income of $4.5 million or $0.04 per share, as compared to a loss of $10.6 million or $0.12 per share in the same period last year. Revenues for the quarter increased to $7.5 million from $6.5 million in the same quarter last year. The company reported a second-quarter profit, helped primarily by a change in fair value of warrant liability, as well as gains from foreign currency translations.

Halozyme Therapeutics, Inc. HALO shares climbed 7.19% to $5.96 in the morning hour after the company posted second quarter net loss of $(14.0) million, or $(0.13) per share, as compared with a net income for the second quarter of 2011 of $3.1 million, or $0.03 per share. Revenues for the second quarter of 2012 were $7.8 million, compared to $23.2 million for the second quarter of 2011.

Arena Pharmaceuticals, Inc. ARNA shares climbed 1.09% to $8.36. Yesterday, the stock was up 14% on rumor that the company could be an acquisition target as reported by Marketwatch.

Last week, the company reported a second-quarter net loss of $22.1 million or $0.12 per share, narrower than $22.9 million or $0.16 per share in the year-ago quarter. Total revenue rose to $21.98 million from $3.26 million in the comparable quarter last year. Analysts expected the company report a loss of $0.07 per share on revenue of $10.04 million for the second quarter.

Array Biopharma Inc ARRY stock gained 6.78% to $5.20. The company posted fourth quarter loss of $8 million, or $0.09 per share, as against a loss of $21.8 million, or $0.38 per share, in the same period last year. Revenue edged up 9%, to $20.7 million from $19 million, while research and development spending fell to $14.9 million from $19.3 million. The company also reported lower interest expense. Analysts were forecasting a larger loss of $0.12 per share and $21.5 million in revenue.

Sarepta Therapeutics Inc SRPT stock surged 24.11% to $10.48. On August 9, 2012, WBB Securities began coverage on shares of Sarepta Therapeutic and the issued a hold rating and a $8.00 target price on the stock. Separately, analysts at Wedbush last month reconfirmed an outperform rating on shares of Sarepta Therapeutic.

Additionally, the company announced that on August 2, 2012, the Company received a stop work order on the Ebola virus portion of the U.S. government contract for Advanced Development of Hemorrhagic Fever Virus Therapeutics due to recently imposed funding constraints. The stop-work order does not apply to the Marburg portion of the contract. If the stop-work order is not lifted, Sarepta anticipates fiscal 2012 revenue will be in the $37 to $43 million range and operating loss to be in the $25 to $30 million range.

Nanosphere, Inc. NSPH shares climbed 4.33% to $3.37 in the early hour. The company, on August 7, 2012, reported second quarter 2012 revenues of $1.3 million compared to $0.5 million for the same period 2011. Net loss for the second quarter of 2012 was $8.4 million, equivalent to the same period in 2011.

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