Health Care Stocks Extending Market-Leading Gains

Health care stocks were sharply higher today, with the NYSE Health Care Index rising over 0.8% while shares of health care companies in the S&P 500 also were up more than 0.8% as a group.

In company news, Alphatec Holdings (ATEC) advanced over 46% on Monday, climbing to a session high of $3.30 a share after the medical device company today announced additional steps to accelerate its spinal technology business, selecting two new board members – including a new executive board chairman – who will invest a combined $3.5 million to $4 million into the company.

Patrick Miles brings over 25 years of industry experience to his new role of executive chairman, including 17 years at NuVasive Inc (NUVA), helping build the startup into a global medical device company producing minimally invasive tools for spinal surgery. Prior to joining NuVasive, he also held sales and marketing roles at Medtronic (MDT) and Smith and Nephew (SNN).

Quentin Blackford also has worked nearly two decades in the medical device industry and currently is executive vice president and chief financial officer at DexCom (DXCM). He also worked at NuVasive, where he was CFO and head of strategy as well as a stint in various finance position at the predecessor company of Zimmer Biomet Holdings (ZBH).

Under terms of their investment agreement with Alphatec, Miles will purchase 1.3 shares of the company’s common stock while Blackford will buy between 220,000 to 440,000 common shares at $2.26 apiece. Miles also will receive five-year warrants to acquire up to 1.3 million additional shares at $5 each. The stock purchases are expected to close by Jan. 1, 2018.

In other sector news,

(+) ECYT, Obtains exclusive worldwide license agreement for the 177Lu-PSMA-617 radioligand therapy targeting the prostate-specific membrane antigen present in about 80% of patients with metastatic castration-resistant prostate cancer from ABX GmbH. Financial terms were not announced.

(-) AEMD, Prices $6.0 mln public offering of 5.45 mln units consisting of one share of common stock and a warrant to buy an additional share at $1.10 per unit, a 28.6% discount to Friday’s closing price. Net proceeds will fund ongoing clinical development and general corporate purposes.

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