Progyny tumbles after Alabama IVF providers pause treatments
22/02/2024 20:21
** Shares of fertility benefits management firm Progyny Inc
PGNY.O tumbling 8.1% to $37.03 on Thurs after in-vitro
fertilization (IVF) providers in Alabama paused treatments
following Alabama Supreme Court ruling days ago that frozen
embryos are considered babies
** PGNY shares on track for biggest one-day pct drop since
Nov 2022
** Alabama Fertility Services on Thurs said it has “made the
impossibly difficult decision to hold new IVF treatments due to
the legal risk to our clinic and our embryologists," ABC news
reports
** On Weds, The University of Alabama at Birmingham paused
IVF after state court's decision, due to fear of prosecution and
lawsuits, a hospital representative said
** KeyBanc analyst Scott Schoenhaus, who rates PGNY
"overweight" with $45 PT, says he believes stock's sell-off is
overdone in a flash research note
** Data shows Alabama clinics comprise about 0.5% of U.S.
volumes, Schoenhaus says, and estimates that just a handful of
these clinics are in PGNY's network
** He adds he does not expect legislative risk spreading
into other states
** PGNY shares falling for 4th straight session and now off
about 9% this week
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))