Tuesday's Health Winners & Losers
A decline in ImClone Systems (IMCL) helped drag down the biotech sector Tuesday, as a courtroom setback for the drugmaker weighed on its shares.
The U.S. District Court in Massachusetts ruled in favor of Repligen (RGEN) and the Massachusetts Institute of Technology, who alleged that ImClone had improperly conducted itself and intimidated a witness in a patent infringement case.
Consequently, the court barred one of ImClone's in-house lawyers from any further use of confidential information in the case and prohibited the company from communicating with the witness or his employer without permission, Repligen said. The patent suit involves the rights to the cancer treatment Erbitux that ImClone sells.
Repligen gained 30 cents, or 8.5%, to $3.85, while ImClone fell $1.04, or 2.7%, to $37.03.ImClone is a component of the Amex biotechnology index, which was down 6.94, or 0.9%, to 785.33. Other companies gained ground on positive analyst comments. For instance, Generex Biotechnology (GNBT) hopped up 44 cents, or 35%, to $1.70 after Rodman & Renshaw initiated coverage on the company with an outperform rating and a price target of $6. The firm also said Generex's oral insulin, Oral-lyn, "could be a significant player in the non-injectable insulin market." NeurogesX (NGSX) rose $1.29, or 16.2%, after Pacific Growth Equities started coverage of the stock with a buy rating. On Monday, Lazard Capital also initiated coverage with a buy. The company said this week that it completed enrollment in a second phase III clinical trial for a patch to treat shingles. Elsewhere, Adventrx (ANX) named Jack Lief chairman to replace M. Ross Johnson, who retired. Lief is president and chief executive of Arena Pharmaceuticals (ARNA). Shares of Adventrx were down 9 cents, or 3.3%, to $2.63.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV