Friday's Health Care Winners & Losers
Shares of over-the-counter drugmaker Chattem (CHTT) jumped Friday after the company announced a $410 million acquisition of five consumer product brands from Johnson & Johnson (JNJ) and Pfizer (PFE). The company will buy ACT mouthwash, Unisom over-the-couter sleep aids, Cortizone anti-itch products, diarrhea treatment Kaopectate, and diaper rash ointment Balmex. Chattem's shares gained 20.1% to $41.35.
Shares of cancer drug developer Genta (GNTA) were up 12.5% to 90 cents after the company said regulators agreed to a trial designed to study a group treated with the drug Genasense compared with a group that will not receive the drug. Both groups will be given the chemotherapy drug fludarabine plus Genentech's (DNA) Rituxan.
Memory Pharmaceuticals (MEMY) shares also rose on an announcement of a private placement. In a press release at the close of trading Thursday, Memory said it entered an agreement with Great Point Partners and MPM Capital for a placement of approximately 28.2 million shares at $1.11 a share. The company will also issue warrants for the purchase of approximately 7.1 million more shares at $1.33 a share to these investors. The deal is expected to raise $32.2 million. Shares were up 11.8% to $1.33.
Drugmaker Schering-Plough (SGP) said the European Union approved its Suboxone tablets for the treatment of opioid dependency in individuals aged 15 and older. Shares settled a penny lower midday to $22.09 after jumping higher in early trading.Among other health stocks falling Friday were Sanofi-Aventis (SNY), down 2.6% to $43.45; AstraZeneca (AZN), falling 1.8% to $61.88; Amgen (AMGN) off 1.4% to $73.72; Novo Nordisk (NVO) 3.2% lower to $71.81; and Novogen (NVGN), whose shares dipped 0.8% to $10.40. Those moving higher included La Jolla Pharmaceutical (LJPC), up 1.7% to $3.60; Osiris Therapeutics (OSIR) gaining 6.7% to $11.37; Ligand Pharmaceuticals (LGND) up 1.8% to $10.12; and GlaxoSmithKline (GSK), up 0.5% to $54.18 following a significant jump earlier Friday morning.
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