And now Susquehanna with a neutral;
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AP
Sector Snap: Biotech Shares Trade Lower
Friday December 7, 12:51 pm ET
Susquehanna Outlook on Product Pipelines Pushes Shares Lower for Some Biotechnology Stocks
NEW YORK (AP) -- Shares of some biotechnology companies traded lower Friday as Susquehanna Financial Group initiated coverage on several companies citing prospects for their pipelines.
Analyst Derek Jellinek initiated coverage of Hayward, Calif.-based Kosan Biosciences Inc. with a "Neutral" rating, citing high development risks for several of the company's programs, which focus on various types of cancer.
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Though the programs have potential, the company lacks a development partner and there are few upcoming catalysts, he said.
The shares hit a 52-week low of $5.32 << not true >> before regaining some ground and recently fell 1 cent to $5.65 in midday trading
Shares of Dublin, Calif.-based SuperGen Inc. fell 14 cents, or 3.2 percent, to $4.22 after getting a "Negative" rating. The stock has traded between $3.92 and $7.53 over the last 52 weeks.
The company has licensed its bone marrow disease treatment Dacogen, but those royalties are likely not sustainable, Jellinek said. Also, an ongoing study has the potential for a negative outcome that could "severely truncate the longevity of the Dacogen franchise."
Meanwhile, shares of San Diego-based Ligand Pharmaceuticals Inc. rose 7 cents to $4.83. Jellinek rated the shares "Positive," citing the company's move to divest products and streamline operations. Shares of Princeton, N.J.-based Pharmasset Inc. rose 9 cents to $13.99. Jellinek gave the shares a "Positive" rating citing the potential of the company's hepatitis C drug candidate.
Shares of San Diego-based La Jolla Pharmaceutical Co. fell 6 cents to $3.97 after Susquehanna analyst Jason Kolbert initiated coverage on the company with a "Positive" rating. He cited the revenue potential for lupus treatment candidate Riquent.
Shares of Bloomington, Minn.-based MGI Pharma Inc., which Jellinek initiated with a "Negative" rating, fell 89 cents to $32.69, and Redwood City, Calf.-based Genelabs Technologies Inc., which Kolbert initiated with a "Neutral" rating, fell 2 cents to $1.41. |
