Unusual 11 Mid-Day Movers 10/02: CIT, LUNA, SSY, ONCY Higher; ETRM, CPRX, DSCO, PGH Lower

October 2, 2009 1:55 PM EDT

EnteroMedics Inc. (NASDAQ: ETRM) 72.6% LOWER; announced preliminary results from its EMPOWER Study. Based on an initial analysis, the study did not meet its primary and secondary efficacy endpoints. There were no therapy-related serious adverse events reported in the study. The EMPOWER Study is a randomized, double-blind, placebo-controlled pivotal study designed to evaluate the safety and effectiveness of the Maestro(R) System for the treatment of obesity.

CIT Group Inc. (NYSE: CIT) 20.8% HIGHER; commenced a restructuring of its capital structure that has been approved by the Company's Board of Directors and by the Steering Committee of CIT's bondholders. Under the plan, CIT Group Inc. and CIT Group Funding Company of Delaware LLC (Delaware Funding) are launching exchange offers for certain unsecured notes. If the Company does not achieve the objectives of the exchange offers, it may decide to initiate a voluntary filing under Chapter 11 of the U.S. Bankruptcy Code. Click here for the full report.

Luna Innovations (Nasdaq: LUNA) 20% HIGHER; rising sharply on extremely heavy volume amid no news. Notably, the stock failed to break above a declining 200-day smooth moving average over the last 3 trading sessions, but has broken above and appears to be holding this level today.

SunLink Health Systems, Inc. (Amex: SSY) 18.4% HIGHER; reports Q4 EPS of $0.11 compared to $0.05 for thes same quarter last year. For the fiscal year ended June 30, 2009, SunLink reported earnings from continuing operations of $1,067,000, or $0.13 per fully diluted share, compared to earnings of $2,009,000, or $0.26 per fully diluted share, for the fiscal year ended June 30, 2008. Consolidated net revenues for the quarters ended June 30, 2009 and 2008 were $49,255,000 and $43,819,000, respectively, an increase of 12.4% for the fourth fiscal quarter.

Oncolytics Biotech Inc. (NASDAQ: ONCY) 17% HIGHER; announced that it has reached an agreement with the U.S. FDA under the Special Protocol Assessment process for the design of a Phase 3 trial examining REOLYSIN in combination with paclitaxel and carboplatin in patients with platinum-refractory head and neck cancers. The SPA is an agreement between Oncolytics and the FDA that the design and planned analyses of the Phase 3 study is adequately designed to provide the necessary data, that depending upon outcome, could support a license application submission for REOLYSIN.

QLT Inc. (Nasdaq: QLTI) 15.8% HIGHER; announced that it has completed the sale of all of the shares of its wholly-owned subsidiary, QLT USA, Inc. to TOLMAR Holding for up to an aggregate of US$230 million. Click here to see the full report.

Yongye International, Inc. (Nasdaq: YONG) 14.2% HIGHER; announced its 2010-2012 strategic plan. Following the Company's rapid business expansion in 2008 and thus far in 2009, Yongye expects to achieve at least 50% growth in revenue during each of the next three years through a strategy focused on geographic expansion into new markets, increased penetration in existing markets, additional marketing and brand-building efforts, and expanded production capacity. The Company also intends to improve its cost structure and gain greater control of its supply and distribution through vertical integration so as to enhance its profit margins.

Catalyst Pharma (Nasdaq: CPRX) 13.7% LOWER; late last night announced that the company has entered into a definitive agreement to sell 3.97 million shares of common stock at a price of $1. The company said it plans to use proceeds to fund certain clinical studies of CPP-109 for the treatment of cocaine addiction, complete one or more non-clinical studies related to compounds recently licensed as part of the Company's agreement with Northwestern University, and for general corporate purposes.

Discovery Labs (Nasdaq: DSCO) 10.7% LOWER; continuing lower today. The stock fell 11% yesterday after posting 2 days of solid gains (11% and 22.5% on Tuesday and Wednesday, respectively) on FDA news.

Pengrowth Energy Trust (NYSE: PGH) 7.4% LOWER; Pengrowth Corporation administrator of Pengrwoth Energy Trust, announced changes to its value creation strategy that focus on investing a larger percentage of cash flow on operated, low cost, low risk, repeatable drilling opportunities in the Western Canadian Sedimentary Basin. Click here for the full report.

Life Time Fitness (NYSE: LTM) 6.4% LOWER; Oppenheimer downgrades the stock from Outperform to Perform. Price target increased from $27 to $30.

To get this report daily visit http://www.streetinsider.com/entities/Unusual+11+Mid-Day+Movers.

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