Re:Biotechs....Protein Design powers biotech group
By Debra McGarry, CBS MarketWatch
Last Update: 7:34 PM ET Dec 22, 1999 Screamers
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NEW YORK (CBS.MW) -- Investors piled into biotech stocks Wednesday, driving the sector index up 6.3 percent amid positive press and year-end buying.
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Updated:
12/22/99 5:08:02 PMÊETThe Amex Biotech Index's ($btk) gain follows a 7 percent jump Tuesday.
Protein Design Labs (pdli), one component in the index, advanced 16 percent, or 8 5/8 to close at 63 1/8.
Warburg Dillon Read analyst Michael Wood initiated coverage of the drug developer with a "buy" rating and set a 12-month price target of $74.
Protein Design develops human and humanized antibodies and other potential drugs to prevent or treat certain disease conditions. The company's SMART humanized antibody technology uses genetic engineering and computer modeling to generate humanized antibodies for use as therapeutic agents.
In a research note, Warburg forecast Protein's total revenue for 1999-2003 at $27 million, $37 million, $53 million, $125 million and $172 million.
The investment firm also said Protein Design's Zenapax drug may become an important revenue generator for the company in the future.
"Biotech stocks are moving into the spotlight with the evolution of companies specializing in the human genomic industry," said Matthew Geller, analyst at CIBC World Markets.
A certain amount of year-end window dressing also contributed to the recent buying, Geller noted.
Other stocks that helped to lift the group: Gilead Sciences (gild) rose 4 13/16, or 12 percent, to 45 7/16; Chiron (chir) gained 5 1/16 to 42 and COR Therapeutics (corr) added 3/8 to 22 7/16.
On Tuesday Gilead admitted infringing on Chiron's U.S. hepatitis C virus protease patens and agreed to pay an unspecified sum and other terms to settle the case. See press release.
The Nasdaq Biotech Index ($ixbt) powered up 5 percent, led by Genome Therapeutics (gene), which soared 50 percent after it announced a genomics-based alliance with Wyeth-Ayerst, an American Home Products (ahp) division. American Home shares dipped 9/16 to 40. See Screamers. |
