Health indices were generally flat Monday, but biotech stocks faced turbulence as takeover talk, study results, product problems and regulatory actions sent certain names all over the map.
18.8% to $82.51 Monday after the company announced post-close Friday that third parties -- including famed investor Carl Icahn -- had expressed
interest in acquiring the company
. Icahn reportedly made a $23 billion bid for the company.
Biogen's Tysabri partner
gained ground Monday as well. The company, which has a 50% interest in the MS drug (which is also being reviewed for Crohn's disease), hired Lehman Brothers to advise on its options if Biogen is acquired by a third party. Elan said that under the terms of its agreement, it can acquire for fair value Biogen's 50% economic interest, sell its 50% interest, continue with the existing agreement or restructure the agreement in conjunction with a potential acquisition.
Elan rose $1.82, or 8%, to $24.17. Also, as if there weren't news enough, Biogen and Elan also said Monday that the Food and Drug Administration will take an
additional three months
to review Tysabri for use as a Crohn's disease treatment.
Speaking of regulatory action,
added 48 cents, or 13.9%, to $3.94 after announcing that the FDA lifted a partial hold on Telcyta clinical trials, permitting the company to resume clinical development of the cancer drug.