Friday's Health Winners & Losers
Health stocks were upbeat on Friday amid little news and ahead of next week's earnings kickoff.
Pharma companies Merck (MRK) and Schering-Plough (SGP), recently in the spotlight for negative news surrounding cholesterol drugs Zetia and Vytorin, enjoyed some investor positivism on Friday. A day after announcing its cost-cutting response to the drug turmoil, Schering shares added 71 cents, or 4.6%, to $16.09. Merck shares rose $1.60, or 4.2%, to $39.96.
Meanwhile, biotech stocks Celgene (CELG), Cephalon (CEPH) and Biogen Idec (BIIB) all gained more than 1.5% on Friday, helping boost the Nasdaq and Amex biotechnology indices to grow 1.2% and 1.8%, respectively.Lazard analyst Matthew Osborne said in a note to investors Friday that he expects biotech Genzyme (GENZ) to deliver earnings growth of 17% in the next three years. Osborne, who has a buy rating and a $90 price target for Genzyme, is also optimistic about midstage data on Genzyme's Clolar for pediatric leukemia and also its candidate for Gaucher disease, due out midyear. Genzyme shares added $1.36, or 1.8%, to $75.94. Elsewhere, Draxis Health (DRAX) said Friday that it will be acquired by Indian drug company Jubilant Organosys for $255 million, or $6 a share. The price is a 22.5% premium over Draxis' price at market close on Thursday. The transaction is expected to close in the second quarter. Shares of the Canadian based company rose $1, or 20.4%, to $5.90 on Friday. Also, Indevus Pharmaceuticals (IDEV) said Thursday post close that it licensed its prostate cancer implant Vantas to Orion Corp. for a potential price of $21 million. Indevus will receive $7 million upfront and up to $14 million more tied to approvals and sales milestones. Its shares rose 8 cents, or 1.7%, to $4.69 on Friday.
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