On Michael King:
BTW, was that he or another analyst who downgraded NBIX from strong buy to buy?
marketwatch.com
BIOTECH STOCKS
Cephalon, biotech stocks slip
By Ted Griffith, CBS.MarketWatch.com
Last Update: 5:13 PM ET Nov. 15, 2002
NEW YORK (CBS.MW) -- Biotechnology stocks were on the downside Friday as one influential analyst cautioned that the sector's performance could be anemic over the next few months.
The Amex Biotechnology Index (BTK: news, chart, profile) declined 1.2 percent and the Nasdaq Biotechnology Index (NBI: news, chart, profile) edged down 0.5 percent.
Analyst Michael King at Banc of America Securities said, in a note to clients, that he sees little on the horizon to propel biotech stocks higher in the remainder of the year or in the first quarter of next year. King said investors may be wise to sell shares to realize gains made during biotech's recent recovery. After plunging 50 percent through the first half of the year, the Amex Biotechnology Index is up close to 30 percent from a multiyear low hit on July 11.
"It would appear to us to be prudent for investors to cash in some chips, particularly those who were gutsy enough to step up and buy stocks over the summer," King wrote in a note to clients.
King added, however, he's optimistic about the full-year outlook for biotech stocks in 2003.
"The group should be driven by improved earnings prospects after several years of slowing growth," the analyst wrote.
King also cut his rating on shares of Cephalon and Gilead Sciences to "market performer" from "buy," noting that both stocks have enjoyed a run-up in recent weeks. King also said Cephalon's stock is likely to come under pressure soon as generic drugmakers seek to break Cephalon's exclusive hold on anti-fatigue drug Provigil. The analyst said the generic challenge will likely not be successful in the near-term, but could nonetheless hurt Cephalon's stock.
Shares of Cephalon (CEPH: news, chart, profile) slid $2.67, or 5 percent, to $55.74. Shares of Gilead Sciences (GILD: news, chart, profile) lost $1.43, or 4 percent, to $36.15
Also headed lower, shares of ImClone (IMCL: news, chart, profile) fell $1.67, or 12 percent, to $11.77. The biotech firm said its third-quarter loss widened as higher expenses offset a jump in revenue.
Shares in the company had soared Thursday amid speculation Bristol-Myers Squibb (BMY: news, chart, profile) might try to acquire ImClone. A Bristol spokeswoman declined to comment. See full story.
Shares of Bristol-Myers Squibb shed 25 cents to $25.05.
The Amex Pharmaceutical Index ($DRG: news, chart, profile) edged up 0.5 percent.
Elsewhere, shares of Alexion Pharmaceuticals (ALXN: news, chart, profile) and CV Therapeutics (CVTX: news, chart, profile) were mixed ahead of important presentations of data on their experimental treatments for cardiac ailments.
At a meeting of the American Heart Association in Chicago, Alexion is expected to report on the results of mid-stage patient testing of its experimental treatment for heart attacks. At the same meeting, which gets started Sunday and runs through Wednesday, CV Therapeutics will present data on its experimental treatment for angina, a painful heart condition.
Shares of Alexion nudged up 2 cents to $11.09 while shares of CV Therapeutics edged down 4 cents to $24.52.
Ted Griffith is a reporter for CBS.MarketWatch.com |
