BGEN ($62..+2) DNA ($50 up 2) , biotech stocks on the rise
By Ted Griffith, CBS.MarketWatch.com
Last Update: 5:27 PM ET Apr 12, 2001
NEW YORK (CBS.MW) -- Biotechnology stocks moved sharply higher Thursday, with stock of Biogen leading the ascent after the company reported strong sales growth of its multiple sclerosis drug.
The Amex Biotechnology Index (BTK: news, msgs, alerts) added 6.7 percent and the Nasdaq Biotechnology Index (NBI: news, msgs, alerts) increased 6.1 percent.
Shares of Biogen (BGEN: news, msgs, alerts) gained $3.67, or 6.3 percent, to $61.78. Biogen reported before the opening of trading that first-quarter sales of its multiple sclerosis drug, Avonex, surged 26 percent to a record $220 million. Biogen's profit, before special gains and taxes, rose 3 percent to $86.6 million.
In a note to clients, analyst Eric Schmidt at SG Cowen said first-quarter Avonex sales topped his expectations by 7 million and he said Avonex sales for the year could exceed his estimate of $937 million.
Through 2003, Schmidt said he expects Avonex sales growth in the "mid-teens" fueled partly by "earlier diagnoses of multiple sclerosis."
Shares of two other large profitable biotechnology companies, Amgen and Genzyme, also gained ground. Shares of Amgen (AMGN: news, msgs, alerts) rose $2.27 to $54.14 while Genzyme (GENZ: news, msgs, alerts) stock increased $4.55 to $101.23.
After the close of regular trading, Genentech (DNA: news, msgs, alerts) said first-quarter net income increased 20 percent to $91.2 million, or 17 cents per share, compared to $76 million, or 14 cents per share, in the year-ago period. Genentech got a boost from strong sales of the cancer drug, Rituxan, which rose 102 percent to $172.1 million from $85.1 million in last year's first quarter.
Stock of Genentech edged up 40 cents to $45.65 in regular trading
Ted Griffith is a reporter for CBS.MarketWatch.com |
