Thursday's Health Winners & Losers
After a decent climb earlier in the week, health stocks took it easy on a fairly mild Thursday.
Big biotechs
Genentech
(DNA)
,
Biogen Idec
(BIIB) - Get Report
and
Gilead
(GILD) - Get Report
were relatively flat, reflecting the tone of the broader industry. A few exceptions moved on data and business updates.
Wednesday after close,
Amgen
(AMGN) - Get Report
announced that data from a late-stage study on its denosumab, for post-menopausal osteoarthritis, had been published in a medical journal. While the company noted that the data were positive, a few analysts speculated on Thursday about a higher infection rate -- and the related risk -- in the denosumab arm of the study. Amgen shares fell $1.02, or 2.4%, to $41.43.
More highly anticipated results from another phase III trial on denosumab, looking at prevention of postmenopausal osteoarthritis, are expected in the second half of the year.
Meanwhile, investors granted
Schering-Plough
(SGP)
shares a bit of relief, reacting positively to a
$1.5 billion cost-cutting plan
. Shares rose $1.49, or 10.8%, to $15.35.
Schering is a component of the Amex pharmaceutical index, which was up 0.5% at 301.05.
Prostate cancer vaccine hopeful
Dendreon
(DNDN)
announced it will sell 8 million shares of common stock at $5.92 as well as warrants for 8 million more at an exercise price of $20 a share to an institutional investor in a direct offering. The company expects proceeds of $47 million, which it intends to use, at least in part, for the commercialization of prostate cancer vaccine Provenge. Its shares edged up 18 cents, or 3.5%, to $5.26.
Elsewhere,
AngioDynamics
(ANGO) - Get Report
rose $1.26, or 11%, to $12.81 Thursday after earnings and settlement news.
The company said it reached an agreement with Diomed to resolve a patent infringement lawsuit dating back to January 2004. As a result, AngioDynamics said it decreased its litigation provision and also recorded a net after-tax gain of $2 million, and 8 cents a share in its third quarter.
For the quarter -- including the settlement -- the company earned $4.8 million, or 20 cents a share. Analysts surveyed by Thomson Financial had predicted 12 cents a share.
Less fortunate,
Sequenom
(SQNM)
, which makes genetic analysis tools, scaled back its 2008 sales forecast in light of economic uncertainty and subsequently lesser funding for its customers. The company now expects to record between $50 million and $53 million in sales. Analysts surveyed by Thomson Financial had predicted $55.3. Shares declined 62 cents, or 9.4%, to $6.09.