Genomics Stks Up;Clinton's Genome Project Comments Cited
Dow Jones Newswires
By Beth M. Mantz
NEW YORK -- The words of President Bill Clinton sure have a powerful effect on genomics.
A few weeks ago, Clinton and British Prime Minister Tony Blair made remarks that sent a shudder through the biotech sector, affecting especially those companies involved in genomics. In a joint statement, the two said that raw gene-sequence information "should be made freely available to scientists everywhere." At the time, investors interpreted the statement as the government's intention to restrict the ability of private companies to sell gene data and develop products.
Wednesday, at a White House Conference on the new economy, Clinton attempted to clarify his past remarks by reaffirming government policy that researchers who discover commercial applications for genetic information should have the right to patent their discoveries.
"If someone discovers something with a specific commercial application, they should get a patent," said the president, adding that genetic information that is uncovered as part of the Human Genome Project should be made public.
"It looks like Clinton took back his earlier remarks," said Michael Becker, an analyst at Wayne Hummer Investments.
Clinton's words seem to have bolstered genomics companies, injecting them with confidence and buoyance.
Shares of PE Corp.- Celera Genomics Group (CRA) recently were up 13 3/8, or 18.2%, to 87. Shares of Genome Therapeutics Corp. (GENE) grew 3 1/2, or 20%, to 21. Shares of Gene Logic Inc. (GLGC) were up 8 7/8, or 29.7%, to 38 3/4. Shares of Human Genome Sciences Inc. (HGSI) gained 6 7/8, or 8.5%, to 87 7/8.
The earlier confusion created by the Clinton-Blair joint statement coincided with a correction in the overall Nasdaq market, and genomics companies' share prices continued to slide.
Because of the lingering effects, genomics stocks "lost 75% of their value, wrongfully so, even though there is real value in these companies," said CIBC World Markets Corp. analyst Matthew Geller. "Genomics will form the basis for a lot of drug discovery in the future."
Clinton's latest comments appear to confirm the view that investors misinterpreted the original statement, according to Janney Montgomery Scott LLC analyst Heather Morris.
"This is good news, (suggesting) the government is not going to interfere with biotech," Geller said. "It should ease some of the nervousness."
-Beth M. Mantz; Dow Jones Newswires; 201-938-5287
On a percentage basis, one of the largest genomics movers was Sequenom Inc. (SQNM). Shares of the company, which analyzes DNA variations, rose 11 3/8, or 47.2%, to 35 1/2.
Other movers include Incyte Pharmaceuticals Inc. (INCY), up 17 9/16, or 21.8%, to 98, and Curagen Corp. (CRGN), up 4 1/2, or 10.3%, at 48 3/8. Milennium Pharmaceuticals Inc. (MLNM) was up 24 1/8, or 19.8%, at 146 1/8. Myriad Genetics Inc. (MYGN) was 6 55/64, or 14.9%, higher at 52 3/4.
-Beth M. Mantz; Dow Jones Newswires; 201-938-5287 |
