Small stocks underperformed the broader market for the second straight session Thursday even as several companies rode high on various good news.
One of the day's best performers was Dusa Pharmaceuticals (DUSA), lately rocketing 57% in extremely heavy trading after the Food and Drug Administration granted "orphan drug" status to Levulan, the Wilmington, Mass., biotech's proposed therapy for esophageal dysplasia. The disease sometimes occurs in patients with Barrett's esophagus and is a high-risk possible precursor to esophageal cancer.
Orphan drug designation, given to promising drugs for treatment of rare diseases, allows for seven years of marketing exclusivity on FDA approval as well as possible grants and tax incentives during the developmental stage. Dusa shares surged $1.58 to $4.35.
Nextar Broadcasting (NXST - Get Report) also came out on top amid news it's considering selling itself, having retained Goldman Sachs to review this and other strategic alternatives. The Irving, Texas, TV broadcaster surged 20.1% to $13.08.Massachusetts-based TechTarget (TTGT - Get Report), which operates a network of information-technology-products Web sites, jumped 16% to $15.08 following its 7.7-million-share initial public offering. A couple of small names meanwhile fired up on positive analyst calls. Information-technology company Stanley (SXE - Get Report) leapt 9.7% to $17.71 after Wachovia upped it to outperform on the heels of impressive fiscal fourth-quarter results, and Lehman Brothers began coverage on Input/Output (IO - Get Report) with an overweight rating. The company, which sells seismic products and services to the oil-and-gas industry, recently added 3.4% to $14.23.