Best and Worst Drug Stocks in Q3
BOSTON (TheStreet) -- KV Pharmaceuticals (KV) was the best-performing drug/biotech stock in the third quarter. The troubled drugmaker's stock price rose 185%, sparked by U.S. regulatory approval to re-launch products that had been pulled from the market earlier due to manufacturing problems.
Bookending KV Pharma's resurgence was the poor performance of Icagen (ICGND), which lost 59% of its value in the third quarter after an experimental epilepsy drug encountered safety problems during a clinical trial.
Overall, the Nasdaq Biotechnology Index rose 12% in the third quarter, matching the performance of the Nasdaq and beating slightly the 11% gain made by the S&P 500. Like the market overall, August and September were especially good months for biotech and drug stocks.
Acquisitions helped two other drug stocks run to the top the quarter's best-performance list. Zymogenetics (ZGEN) closed the quarter up 141% due to Bristol-Myer Squibb's (BMY) $885 million, or $9.75-a-share, takeover offer in September.Likewise, Osteotech (OSTE) shares were up 126% on a $6.50-a-share buyout from Medtronic (MDT) in August. Rounding out the top 10 best-performing biotech/drug stocks in the third quarter, according to CapitalIQ: Nile Therapeutics (NLTX) (+110%), Ista Pharmaceuticals (ISTA) (+94%), Medicines Co. (MDCO)(+94%), Savient Pharmaceuticals (SVNT) (+83%), Amicus Therapeutics (FOLD) (+78%), Oncolytics Biotech (ONCY) (+77%) and Cypress BioSciences (CYPB) (+76%). Arena Pharmaceuticals (ARNA) was the second-most damaging stock for drug and biotech investors in the just-closed quarter, losing 56% after a U.S. advisory panel voted down the company's weight-loss drug lorcaserin. Vermillion (VRML) shares fell 56% in the quarter on the poor launch of its ovarian cancer test. Rounding out the quarter's worst biotech and drug stocks, according to CapitalIQ: Molecular Insight Pharmaceuticals (MIPI) (-50%), Xoma (XOMA)(-50%), AMAG Pharmaceuticals (AMAG) (-49%), AspenBio Pharma (APPY) (-47%), Idenix Pharmaceuticals (IDIX) (-36%), Epicept (EPCT) (-36%) and DARA BioSciences (DARA) (-34%). --Written by Adam Feuerstein in Boston.
>To contact the writer of this article, click here: Adam Feuerstein. >To follow the writer on Twitter, go to http://twitter.com/adamfeuerstein. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV