Updated from 2:50 p.m. EDT
Biotech and other health care stocks edged lower Wednesday on a precipitous drop from Dendreon (DNDN) and a host of poor earnings.
Dendreon, the biopharmaceutical company that saw shares soar to more than $25 early last month, experienced a dramatic fall after the company announced that the Food and Drug Administration had asked for additional clinical data on its therapeutic cancer treatment Provenge before granting approval. Shares plummeted $11.41, or 64.3%, to $6.33.
Greater-than-expected losses sank Inspire Pharmaceuticals (ISPH). The company reported a net first-quarter loss of $26.1 million, or 62 cents a share. Analysts polled by Thomson Financial had expected a net loss of 55 cents a share. Quarter over quarter, losses increased from $14.0 million, or 33 cents a share, from last year. Shares fell 72 cents, or 9.9%, to $6.52.Progenics Pharmaceuticals (PGNX - Get Report) also reported a wider-than-expected first-quarter loss of $10.4 million, or 40 cents a share. In the year-ago quarter, the company reported a loss of $2.6 million, or 10 cents a share. The Thomson Financial consensus target was a loss of 14 cents a share. Progenics says its increase in expenses was mostly due to a $12.6 million increase in research and development costs incurred in its collaboration with Wyeth (WYE), preparation for clinical trials for its other products, and an increase in personnel. Progenics shares fell 79 cents, or 3.3%, to $23.14. Osteotech (OSTE) reported a net first-quarter loss of $600,000, or 4 cents a share, including $1.1 million in costs associated with the settlement of certain litigation and related legal fees. Excluding those fees, adjusted non-GAAP net income was $400,000, or 2 cents a share. Net income for the same period in the previous year was $500,000, or 3 cents a share. Shares declined 35 cents, or 4.6%, to $7.24.