Health Winners & Losers: Progenics
05/22/08 - 04:23 PM EDT
Elizabeth Trotta
Health stocks generally rebounded Thursday, as the biotech sector slightly outpaced the broader markets.
The Nasdaq and Amex biotechnology indices were up 1.3% and 1%, respectively, while the Amex pharmaceutical index added a less-robust gain of 0.2%. Biotechs Amgen (AMGN Quote - Cramer on AMGN - Stock Picks), Gilead (GILD Quote - Cramer on GILD - Stock Picks) and Genzyme (GENZ Quote - Cramer on GENZ - Stock Picks) racked up 1.4%, 2.2% and 2.1% gains. These stocks were light on headlines, but others had news aplenty. Partners Wyeth (WYE Quote - Cramer on WYE - Stock Picks) and Progenics (PGNX Quote - Cramer on PGNX - Stock Picks) gave an update on two trials involving their Relistor for painkiller-induced constipation. Progenics gave positive results for an oral formulation of the drug in patients with chronic non-malignant pain, such as back pain and osteoarthritis, who were taking opioids for pain management. Positive The company also announced that a phase III trial in the intravenous formulation failed to meet primary or secondary endpoints, confirming an earlier study announced in March. Progenics shares rose $1.29, or 9.8%, to $14.47, while Wyeth added 0.5% to $43.86. Meanwhile,Vertex (VRTX Quote - Cramer on VRTX - Stock Picks) shares added 93 cents, or 3.6%, to $27 on Thursday, rebounding somewhat from Wednesday's news that Schering-Plough (SGP Quote - Cramer on SGP - Stock Picks) would move its competing Hepatitis C drug into phase III development sooner than previously expected. Wall Street analysts reaffirmed expectations for Vertex's Telaprevir despite the acceleration of Schering's program. "The one year plus time advantage that we believed Vertex had over Schering seems to have evaporated. With that said, we remain confident in the advantages that telaprevir has vs. boceprevir, and believe our modest out-year market projections are obtainable and realistic," wrote Susquehanna's Jason Kolbert. "As such, we are not backing off our Positive outlook for Vertex." Schering shares added 2.1% to $19.72.
RSS
