Biotech Sector Still Cloaked in Red
New York, Jul 11, 2001 (123Jump via COMTEX) -- Wednesday, the Nasdaq
Biotechnology Index fell 13.8 points to 879.01. The Amex Biotechnology Index
gave up 6.84 points to 526.17. The Amex Pharmaceutical Index surrendered 3.43
points to 381.15.
Shares of Pfizer Inc. (PFE) tumbled 1.96, or 4.8%, to 38.85 after the stock was
downgraded at Sanford Bernstein from "outperform" to "market perform."
Guidant Corp. (GDT) was again actively traded today, plunging 3.26, or 10.41%,
to 28.05. Yesterday, the stock shed 14% of its value after a FDA panel voted not
to approve its Contak CD device - a cardiac resynchronization therapy and
implantable defibrillator.
Downgrades from Wedbush Morgan, Robertson Stephens, Goldman Sachs, ABN Amro,
Bear Stearns and Merrill Lynch hammered the company even further.
Johnson & Johnson (JNJ) added 99 cents to 53.49. Yesterday, Roche Holding AG and
Genetics Institute Inc. reached a settlement with J&J and partner Amgen Inc.
(AMGN), concerning a patent dispute over the anemia drug, Neorecormon. Amgen
shares slipped 52 cents to 57.01.
Also actively traded, shares of pharmaceutical giant Merck & Co. Inc. (MRK) fell
1.36 to 62.36 despite being chosen as a stock pick at Dreman Asset Management
today.
Shares of medical-device maker Medtronic Inc. (MDT) dove 2.6, or 5.45%, to
45.15, despite a company announcement that an FDA advisory committee had
recommended unanimously that its InSync cardiac resynchronization system be
approved for the treatment of heart failure. Bear Stearns initiated coverage of
the stock with a rating of "attractive."
Shares of Abbott Laboratories (ABT) climbed 1.99, or 4.11%, to 50.18 through
active trading. Immunex Corp. (IMNX) gave up 26 cents to 14.02.
Shares of Genentech Inc. (DNA) lost another 1.10 to 42.75 after plummeting
almost 16% yesterday. Yesterday, Genentech and its two partners - Novartis AG
(NVS) and Tanox Inc. (TNOX) - revealed that approval of their asthma treatment
Xolair will be delayed until they submit additional information to the FDA.
Tanox said that the delay would negatively affect its financial results. Adams
Harkness responded by downgrading the stock's rating from "buy" to "market
perform," prompting shares to dip an extra 11 cents to 14.09. Novartis shares
declined 15 cents to 32.98.
The Procter & Gamble Co. (PG) announced that it would increase its quarterly
dividend on Class A common shares by 3 cents - from 35 cents to 38 cents per
share. Shares closed up 1.74 to 68.75.
Among yesterday's movers, shares of Inamed Corp. (IMDC) rallied 10 cents to
24.1, after slumping 4% yesterday. The company reported that earnings would be
substantially lower than last year's profit and that revenue would be $62.6
million - lower than previously forecast.
Shares of Aspect Medical Systems Inc. (ASPM) regained 16 cents to 11.35 after
plummeting almost 20% Tuesday.
The company warned that second-quarter losses would check in at the high end of
its forecast range due to softer-than-expected revenue of $8.9 million. Morgan
Stanley cut its rating on the stock from "outperform" to "neutral."
Shares of CardioGenesis Corp. (CGCP) made a strong comeback today - gaining 7
cents, or 8.24%, to 92 cents. Shares crumbled more than 70% yesterday, after the
FDA Circulatory Devices Panel announced that it would not approve its
Percutaneous Myocardial Revascularization (PMR) laser heart procedure, which is
designed to relieve angina pain.
Biolase Technology Inc. (BLTI) was moving onward and upward Wednesday. Shares
tacked on another 30 cents, or 6.19%, to 5.15 after jumping more than 5%
yesterday. Biolase announced today that the FDA had approved its Waterlase
dental laser.
Elsewhere in the sector, shares of Barr Laboratories Inc. (BRL) fought back from
an afternoon dip in the red zone, to close up 1.3 to 66. The company announced
this morning that it would report higher-than-expected fourth-quarter earnings
ranging from 49 cents to 51 cents per share. Analysts projected a 43-cent per
share profit.
Scios Inc. (SCIO) was not so lucky - shares remained in the red all day.
The company received an approvable letter from the FDA for its congestive heart
failure drug, Natrecor. Industry analysts are concerned about the additional
delay, which will cause the product launch to be pushed back until the third
quarter of the year, pending final FDA approval. Shares gave up 9 cents to 21.2.
In the analyst corner, Dain Rauscher Wessels upgraded its rating on Penwest
Pharmaceuticals Co. (PPCO) from "buy speculative" to "strong buy speculative"
citing the company's improved financial position. Shares jumped 1.43, or 9.29%,
to 16.82.
Salomon Smith Barney plunged into the sector today, initiating coverage of
Gilead Sciences Inc. (GILD), MedImmune Inc. (MEDI) and Neurocrine Biosciences
Inc. (NBIX) with a rating of "outperform" on all three stocks.
Gilead lost 1.58 to 52.92; MedImmune advanced 71 cents to 42.61; Neurocrine
shares dove 1.9, or 5%, to 36.
Banc of America initiated coverage on Cell Therapeutics Inc. (CTIC) with a
"strong buy" rating and a $37 price target. Shares climbed 1, or 4.66%, to
22.46.
Bear Stearns started coverage on Genzyme Corp. (GENZ) with an "attractive"
rating. Shares slipped 89 cents to 57.33.
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