Health Winners & Losers: Genentech
08/13/08 - 05:16 PM EDT
Elizabeth Trotta
Health stocks were kept relatively in-line with the broader markets on a fairly lame hump day for the sector.
The Amex pharmaceutical index was down 1.77, or 0.56%, at 314.38. Components Wyeth(WYE Quote - Cramer on WYE - Stock Picks) and King Pharmaceuticals (KG Quote - Cramer on KG - Stock Picks) were both down more than a percentage point, but most pharma movement was otherwise modest. The Amex and Nasdaq biotechnology indices were down 0.2% and 0.1%. Components of the latter index, Vertex(VRTX Quote - Cramer on VRTX - Stock Picks) gave up 3.5% and Alkermes(ALKS Quote - Cramer on ALKS - Stock Picks) fell 46 cents, or 2.8%. The Food and Drug Administration warned medical professionals on Tuesday of the risk of adverse reactions at the injection site in patients given alcohol dependence drug naltrexone. Regulators said they received 196 reports of injection site reactions and are now working with the drug's manufacturers to make changes to the prescribing information based on those reports. Naltrexone is an intramuscular gluteal injection that's made by Alkermes and marketed in the U.S. by Cephalon(CEPH Quote - Cramer on CEPH - Stock Picks) under the brand name Vivitrol. Cephalon shares were also down a bit on Wednesday, giving up 66 cents, or 0.9%, to $76.26. Meanwhile, Genentech(DNA Quote - Cramer on DNA - Stock Picks) issued a response to Roche's $89-a-share bid on Wednesday, saying its special committee felt unanimously that the bid substantially undervalued the company. Genentech said it would, however, consider a higher offer. The company also said it put into place an employee retention program to combat concerns sparked by Roche's advances. Its shares were up 52 cents, or 0.5%, to $98.37. In earnings, Cardiome Pharmaceuticals(CRME Quote - Cramer on CRME - Stock Picks) gave up 73 cents, or 7.8%, to $8.62. The company reported Tuesday after the bell a loss of 18.1 million Canadian dollars, or 28 Canadian cents in the recent quarter, wider than a loss of 14.6 million Canadian dollars, or 23 Canadian cents per share a year prior. Revenue decreased 82% to 200,000 Canadian dollars.
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