Health Care Stocks Still Adding to Earlier Gains

Health care stocks were higher again Tuesday, with the NYSE Health Care Index rising nearly 0.8% while shares of health care companies in the S&P 500 were up 0.8% as a group.

In company news, CytRx Corp (CYTR) shares dropped to a record low on Tuesday after the biotech company working on a new cancer treatment priced an $8.1 million private placement of nearly 19.3 million shares of its common stock with existing institutional investors at 42 cents apiece, a 16% discount to Monday’s closing price.

The company plans to use net proceeds from the offering after first paying underwriter discounts and other offering costs for working capital and for general corporate purposes. CYTR shares were down almost 20% at 41 cents apiece, or just a penny above their worst-ever price.

Leave a Comment