Health Winners & Losers: Medivation
09/03/08 - 04:45 PM EDT
Elizabeth Trotta
Biotech stocks closed on a more neutral note after a Wednesday that included a licensing deal, clinical data and a few analyst adjustments.
Shares of Medivation(MDVN Quote - Cramer on MDVN - Stock Picks) surged after the company announced a big deal with Pfizer . Pfizer(PFE Quote - Cramer on PFE - Stock Picks) will pay Medivation $225 million up front for worldwide marketing rights to its late-stage Alzheimer's disease drug Dimebon. If the drug is approved, Medivation will bank another $500 million from Pfizer. Pfizer will assume 60% of development expenses and potential profits. Shares of Medivation rose $3, or 11.5%, to $29.03, while Pfizer rose 3 cents to $19.20. Medivation is a component of the Nasdaq biotechnology index, which was up 7.22, or 0.8%, at 887.38. In clinical news, Regeneron Pharmaceuticals(REGN Quote - Cramer on REGN - Stock Picks) said Wednesday that a mid-stage study on its Arcalyst in gout patients was successful in meeting its primary and secondary endpoints. The drug produced a statistically significant reduction in the incidence of gout flares versus placebo. There were no serious drug-related adverse events reported. Based on the results, Regeneron plans to initiate late-stage development of Arcalyst in gout early next year. Regeneron shares were up by $1.22, or 5.9%, to $21.80. Forest Laboratories (FRX Quote - Cramer on FRX - Stock Picks) fell $5.19, or 14.3%, to $31.08 on Wednesday after the company announced results from two late-stage trials on its experimental drug for patients with moderate to severe chronic obstructive pulmonary disease, or COPD. The company said the once-daily aclidinium bromide achieved its primary endpoint, showing a statistically significant difference versus placebo in a measure of lung function that is affected in patients with moderate to severe COPD. However, the drug missed certain secondary endpoints and underwhelmed some expectations.
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