Health Care Stocks Still Rising

Health care stocks were drifting off their prior gains in afternoon trading, with the NYSE Health Care Index climbing more than 0.1% while shares of health care companies in the S&P 500 were up almost 0.4% as a group today.

In company news, Rigel Pharmaceuticals (RIGL) was higher Wednesday, at one point climbing almost 11% to a session high of $3.58 a share and reversing steep declines in after-hours trading last night that followed the specialty drugmaker’s disclosing plans to sell $40 million of its common stock in an upcoming public offering.

The company also expects to issue 30-day options to underwriters participating in the offering to buy up to $6 million additional shares to cover possible overallotments, according to the preliminary prospectus issued last night.

Net proceeds, after first paying underwriter discounts and other offering expenses, will fund future research and development, commercial preparation and general corporate purposes, including potential acquisitions of complementary technologies or businesses, although Rigel said it has no transactions in progress at this time. .

In other sector news,

(+) CTMX, (+19.0%) Climbs to a new record high after the company announces a strategic collaboration with Amgen (AMGN) to co-develop potential genetic oncology medications. Amgen will pay $40 mln upfront and acquire a $20 mln stake in CytomX, which is eligible for up to $455 mln in milestone payments.

(-) CLSN, (-26.4%) Revises Series AAA and Series BBB warrants issued to investors in July, making them immediately exercisable to buy up to 2.435 mln shares each at $2.07 and $4.75 per share, respectively. Also issues new Series DDD warrants to buy up to 1.17 mln shares at $6.07 each.

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