Biotech and pharma stocks were smashed with the broader markets Monday as the House rejected an economic bailout plan.
The Nasdaq and Amex biotechnology indices were down 3.3% and 3%, respectively. Biotech staple Genentech (DNA) shed 6.46%, Amgen (AMGN - Get Report) gave up 8.52% and Gilead's (GILD - Get Report) shares were off by 12.75%.
The Amex pharmaceutical index faired worse than the biotech indices, falling 5.45%, to 282.94. Among those hit the hardest, Sanofi Aventis (SNY - Get Report) gave up 8.06% and GlaxoSmithKline (GSK - Get Report)fell 6.34%.A few news items: The drama drags on for ImClone (IMCL) investors. The company said Monday that its mystery $70-a-share bidder will either make a firm proposal or withdraw its offer by Wednesday. Thus, investors may have to wait until Wednesday, but should find resolution. Of course, Bristol-Myers Squibb (BMY - Get Report), which has a standing hostile tender for $62 a share, is also eager for word. ImClone shares traded down $1.42, or 2.24%, to $61.96, while Bristol shares were off 97 cents, or 4.7%, at $19.85. Wuxi PharmaTech (WX) and Covance (CVD) said Monday that they'll no longer pursue a joint venture in China and the U.S. Wuxi shares fell $2.11, or 11.8%, to $13.83. The company said it will return to its original plan to build and operate a 323,450-square-foot facility in Suzhou, China, set to open in the second half of 2009. Covance also said it will revert to its original plan to build a world-class preclinical facility in the region. Covance shares fell $2.09, or 2.27%, to $89.84.