Health Stocks in Motion
Updated from 2:43 p.m.
Shares of
Cell Therapeutics
(CTIC) - Get Report
were among the worst-performing health-related stocks Monday, falling 47.5% after the company said its lung cancer treatment failed to meet its primary endpoint.
The company's Xyotax drug, used in combination with carboplatin, showed similar survival rate data as patients who took paclitaxel in combination with carboplatin. Cell Therapeutics' primary endpoint was to show a better survival benefit using its drug and carboplatin. Shares traded down $4.75 to $5.25.
Celgene
(CELG) - Get Report
rose 18.1% after the company said its blood cancer drug exceeded expectations in two phase III trials. A special committee found that patients using the company's revlimid drug plus dexamethasone showed significant improvement compared with patients who received dexamethasone by itself. Celgene said that it has opened discussions with the Food and Drug Administration and with international regulators related to the submission of its most recent data for potential approval. The phase III trials involved 705 patients in 97 sites around the world. In addition to the positive efficacy data, Celgene said the drug's safety profile was favorable as well. Shares traded up $5.20 to $33.88.
Shares of
DaVita
(DVA) - Get Report
fell 4.4% after the operator of dialysis centers said it received a subpoena from the Department of Justice. The subpoena calls for the company to produce a wide range of documents related to the company's operations from December 1996 to the present. Specifically, the subpoena requires documents related to pharmaceutical and other services provided to patients, relationships the company has with pharmaceutical companies, and financial relationships with doctors and joint ventures. DaVita said the subpoena overlaps with subject matter that is already being investigated by the U.S. attorney's office in the eastern district of Pennsylvania.
The recent subpoena, which is from a U.S. attorney's office in Missouri, has been issued in connection with a joint civil and criminal investigation, DaVita said. "We have worked hard to create and sustain a culture of compliance at DaVita, as well as the policies and systems to support that culture," the company said. "We look forward to the opportunity to answer whatever questions the government has." Shares traded down $1.95 to $42.10.
VI Technologies
(VITX)
fell 8% after the company said it received a going-concern qualification in its most recent 10-K filing. The qualification, according to the company, was based on its cash balance of Dec. 31, 2004, which was deemed insufficient to fund operations over the next year. In December, the company announced that it had signed binding agreements with a group of investors for a $20 million private placement of stock and warrants. The financing is subject to the closing of its proposed merger with Panacos Pharmaceuticals. The company said it would host a shareholders meeting on March 10 to vote on the $20 million financing and its merger with Panacos. Shares traded down 6 cents to 69 cents.
Other health care movers included
Elan
(ELN)
, up 73 cents to $6.44;
Pfizer
(PFE) - Get Report
, up 33 cents to $27.18;
Boston Scientific
(BSX) - Get Report
, down 66 cents to $30.73;
Biogen Idec
(BIIB) - Get Report
, up 6 cents to $37.59;
Johnson & Johnson
(JNJ) - Get Report
, up 70 cents to $68.44;
Merck
(MRK) - Get Report
, up 2 cents to $31.70;
Medtronic
(MDT) - Get Report
, up 53 cents to $54; and
Amgen
(AMGN) - Get Report
, up 7 cents to $62.11.