Health stocks dragged to start the week, in line with broader markets.
The Nasdaq and Amex biotechnology indices were down 1.4% and 1.9%, respectively. On its first day of action, the new Nasdaq OMX Global Biotechnology Index was down 1.3%.
Pharma stocks fared slightly better, with the Amex pharmaceutical index giving up only 0.9%. However,
AstraZeneca
(AZN) - Get Report
and
King Pharmaceuticals
( KG) were its only components that stayed in positive territory.
Of those that gave up the most ground:
Schering-Plough
( SGP)and
Eli Lilly
(LLY) - Get Report
gave up 2.2% and 1.9%, respectively.
Regulators warned medical professionals of six cases of pancreatitis, two of which led to patient deaths, possibly related to
Amylin
( AMLN) and Lilly's Byetta, and said they're working to strengthen the safety label for the diabetes drug.
Shares of Amylin fell 16%, to $28.86.
Dyax
(DYAX)
shares shot higher Monday after the company announced positive late-stage trial results for its Hereditary Angiodema (HAE) drug DX-88. The company said that a phase III trial, dubbed Edema 4, successfully met its primary and secondary endpoints. Dyax also said the drug was well tolerated with no drug-related serious adverse events reported.
Dyax is expected to file the last module of its application for DX-88 for FDA approval early in the fourth quarter based on the phase III study results announced on Monday. Dyax shares were up more than 10% to $4.78 in recent trading.
In analyst actions, Needham initiated coverage on
Cardica
(CRDC)
with a hold rating. Shares were off by 26 cents, or 2.9%, at $8.87.
Elsewhere, Ladenburg Thalmann downgraded
Micromet
( MITI) to neutral from buy. Shares were up 9.4% for the day, having risen 23% in the last week, arriving at $5.97 late this Monday.
Also, Citigroup downgraded
Omrix BioPharma
( OMRI)to hold from buy, upping its price target to $23 from $20 on Monday. Shares were up 22 cents, or 1%, to $22.35.
