Sector Summary: The Healthcare sector (+0.23%) is trading up today, slightly outperforming the S&P 500 (+0.09%) General Commentary: Dendreon once again delivered quarterly earnings below expectations. The company reported a second quarter loss of $0.61 per share, four cents less than the expected loss of $0.57. Provenge, the company's lead drug for the treatment of prostate cancer, saw sales of $80 million, less than the $85.76 million consensus and down from last quarter's sales of $82.1 million. The company did announce a strategic restructuring plan which will involve the closing of a production facility in Morris Plains, NJ. Dendreon believes it will be cash-flow positive at $100 million in quarterly net product revenue. Deutsche Bank and JP Morgan downgraded the company, and Brean Murray issued some cautionary color on the results. Summer Street Research took a contrary view, stating that weakness represents a buying opportunity. They believe that stabilization of the company's sales force will lead to expedited uptake. They reiterated a Buy rating and $18 target. No one is certain what the future will hold for Dendreon but a return to the 2010 glory days of $50+ per share seems highly unlikely.

Gainers on news: Amyris (AMRS +19.24%) Signed amendment to existing technology collaboration agreement with Total; to receive $30 mln in third quarter of 2012 StemCells (STEM +5.08%) Granted patent in Japan that broadly covers the prospective isolation and enrichment of neural stem and progenitor cells using antibody selection, as well as the use of these cells to treat disorders of the central nervous system Omeros (OMER +4.85%) Announced it believes it has identified the proteins that activate the alternative pathway of the complement system, an important part of the immune systemDecliners on news: Dendreon (DNDN -19.01%) Announced strategic restructuring; projects annual cost savings of ~$150 mln; expects to be cash-flow positive at ~$100 mln in quarterly net product revenue Amarin (AMRN -9.44%) Seeing significant insider selling following approval of Vascepa, the company's treatment for high triglyceridesGainers on earnings: ZELTIQ (ZLTQ +21.84%) Reported Q2 loss of $0.24 per share, Capital IQ consensus -$0.18; revenues rose 28% y/y to $22.3 mln, Capital IQ consensus $20.8 mln Medidata Solutions (MDSO +16.91%) Reported Q2 EPS ex items of $0.23 (in line), revenues rose 6.6% yoy to $53.5 mln vs $52.24 mln estimate; issued upside Q3 and FY12 revenue guidance CryoLife (CRY +10.88%) Beat quarterly EPS by $0.05 ($0.10 vs $0.05 estimate), revenues rose 12.9% yoy to $33.2 mln vs $32.79 mln estimate AUXL +9.55%, IPXL +7.36%, RTIX +3.51%, MD +3.44%, HOLX +3.18%, PFE +2.66%, BAYRY +2.63%, ACOR +0.77%, BRKR +0.30%, VRTX +0.28

Dcliners on earnings: Dendreon (DNDN -19.01%) Missed quarterly EPS by $0.04 (-$0.61 vs -$0.57 estimate), revenues rose 66.0% yoy to $80 mln vs $85.76 mln estimate Humana (HUM -13.00%) Reported Q2 EPS of $2.16, revenues rose 4.5% yoy to $9.70 bln vs $9.83 bln estimate; issued downsuide Q3 and FY12 EPS guidance LCA Vision (LCAV -6.11%) Missed quarterly EPS by $0.03 (-$0.17 vs -$0.14 estimate, revenues rose 3.3% yoy to $25.2 mln vs $24.98 mln estimate LMNX -3.77%, GERN -3.12%, XRAY -2.23%, ACUR -2.04%, UNIS -0.61%, AET -0.38%

Upgrades/Downgrades: Nanosphere (NSPH +6.62%) Upgraded to Overweight from Neutral at Piper Jaffray Hologic (HOLX +3.18%) Upgraded before the open to Buy from Neutral at Dougherty Luminex (LMNX -3.77%) Upgraded to Neutral from Underweight at Piper Jaffray