Idenix Down; Novartis Won't License Drug Candidate

NEW YORK (AP) — Shares of Idenix Pharmaceuticals Inc. fell Friday after the company said Novartis AG will not exercise an option to license the company's lead drug candidate, aimed at treating hepatitis C.

The stock fell 38 cents, or 15.2 percent, to $2.12 in afternoon trading. Shares have traded between $1.86 and $6.82 over the last 52 weeks.

Wall Street had been anticipating a decision from Novartis on IDX-184 since Idenix reported positive "proof-of-concept" data several months ago.

"While the Novartis decision is clearly not positive for the stock, it may not have been the best partner for IDX-184's commercial potential," said Leerink Swann Research analyst Howard Liang in a note to investors.

Other attractive partners for Idenix could include Merck, Boehringer Ingelheim or Johnson & Johnson, Liang said.

"We continue to see IDX-184 as an attractive asset in the potentially strategically important class of nucleoside-based Hepatitis C (treatments) polymerase inhibitors," Liang said. He kept an "Outperform" rating on the stock.