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Orchard Therapeutics surges, MaxCyte plunges amid healthcare sector fluctuations

EditorHari Govind
Published 05/10/2023, 16:54
Updated 05/10/2023, 16:54
© Reuters.

The healthcare sector experienced significant fluctuations on Thursday, with notable shifts in stock prices for Orchard Therapeutics (NASDAQ:ORTX), MaxCyte (LSE:MXCT), and Calliditas Therapeutics (NASDAQ:CALT).

Orchard Therapeutics rallied more than 97%, defying the downward trend observed with iShares Biotechnology ETF (NASDAQ:IBB) and Health Care Select Sector SPDR Fund (NYSEARCA:XLV), which dipped 0.9% and 0.2% respectively in pre-bell trading. This dramatic surge followed the announcement of its acquisition by Kyowa Kirin at $16 per American depositary share, amounting to approximately $387.4 million in total. The company's stock has been trading near its 52-week high, with a strong return over the last month, three months, and year according to InvestingPro Tips. In addition, the company holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. Despite not being profitable over the last 12 months, two analysts have revised their earnings upwards for the upcoming period, as per InvestingPro Tips.

Calliditas Therapeutics also saw an upward trend, with its shares rising over 4%. This boost came after the European Medicines Agency's Committee endorsed its Alport syndrome drug, setanaxib.

On the other hand, MaxCyte forecasted a revenue drop for 2023, expecting revenues to fall within the range of $34 million to $36 million. This forecast led to a sharp 21% plunge in the company's stock price.

The day's events underline the volatile nature of the healthcare sector, with considerable shifts in stock prices driven by acquisitions, regulatory endorsements, and financial forecasts.

In terms of real-time metrics, Orchard Therapeutics has a market cap of $369.4 million and a negative P/E ratio of -2.76, according to InvestingPro Data. The company's revenue for the second quarter of 2023 is $21.31 million, with a revenue growth of 84.27%. The company's gross profit margin for the same period is -289.85%, indicating weak gross profit margins, which is in line with the InvestingPro Tips. The company's return on assets for the second quarter of 2023 is -34.66%, suggesting a low return on invested capital.

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For more insights and tips on Orchard Therapeutics and other companies, consider subscribing to InvestingPro, which offers a wealth of information, including additional InvestingPro Tips.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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