>>Praecis, biotech stocks head lower
By Ted Griffith, CBS.MarketWatch.com
Last Update: 1:02 PM ET Sept. 18, 2001
NEW YORK (CBS.MW) -- Biotechnology stocks fell Tuesday with shares of Praecis Pharmaceuticals among the leading decliners because of dwindling hopes about the company's experimental prostate cancer treatment.
The Amex Biotechnology Index (BTK: news, chart, profile) fell 2.6 percent and the Nasdaq Biotechnology Index (NBI: news, chart, profile) dropped 3.1 percent.
Shares of Praecis tumbled $1.48, or 22 percent, to $5.29. Analyst Meirav Chovav at Credit Suisse First Boston said she was cutting her rating from "strong buy" to "hold" on Praecis' stock. Chovav said the latest data released on Praecis' experimental prostate cancer treatment indicate that the drug may be inferior to other medications after about 6 months of treatment.
Shares of Praecis also tumbled back in June after the U.S. Food and Drug Administration raised questions about the prostate cancer drug, called Plenaxis. Praecis has said "it is committed to responding to the FDA's concerns, but could give no assurance that it will be successful in obtaining approval."
"Even if Plenaxis is approved, there is a risk that the drug's use could be limited," Chovav wrote in a note to clients.
Elsewhere, shares of Amgen (AMGN: news, chart, profile) were off 43 cents to $60.42 in recent action. Amgen announced Tuesday the U.S. Food and Drug Administration had approved the company's successor to its blockbuster anemia treatment Epogen. The approval of the drug, called Aranesp, is a win for Amgen, but some analysts suggested the OK was anticipated and its significance was already reflected in the value of Amgen's stock. See full story.
Ted Griffith is a reporter for CBS.MarketWatch.com<<
Ouch. Plus the endometriosis indication faces competition. Questions have been raised about observed side effects there. So far none in those trials, but they are at a smaller, earlier stage. Got to see if the dosages are the same. Or does someone have that at their fingertips? If the side effects that showed up in the cancer trials show up in the endometriosis trials, forget it, the clinical benefit over safer alternatives -- lower initial leutenizing hormone spike -- wouldn't be worth it.
This leaves PRCS with Apan for Alzheimer's in PI (looking for signs of efficacy via measurement of beta amyloid plaques cleared into the CSF, + safety), and topical Latranal for back pain in PII (sort of a POZN/PTIE combo approach, Latranal combines a muscle relaxant and something "thought to affect nerve action" (per the 10-K)). The preclinical stuff includes a CCR5 agonist (personally, I like that band, particularly their "Bad Moon Rising") for AIDS, an endometriosis diagnostic, an NF-kB inhibitor (PPI 3088) for anti-inflammatory stuff, and finally some ligands that bind the androgen receptor for hormone-independent prostate cancer.
They're pretty near cash, but have some kind of burn rate (don't know; I will eventually listen to the CC for other clues unless someone already has and posts notes). Any opinions on the research premium now assuming Plenaxis is a total failure? I have reservations about any neuro drug, but PRCS "looks" cheap.
Cheers, Tuck |
