Earnings, regulatory developments, and business updates did little for health stocks Wednesday as they generally followed the broader markets lower.
Investors shrugged a day after a Food and Drug Administration advisory panel
( CEPH) pain drug Fentora for expanded uses. After opening the session on a gap lower, the stock climbed 3% to end the day at $62.89.
JMP Securities lowered its price target for Cephalon's shares to $69 from $85, while UBS dropped its target more modestly to $82 from $84. Thomas Weisel's Donald Ellis, who has a $77 price target on the stock, said he expects the FDA will eventually approve expanded use of Fentora.
said it will spin off its novel biotechnology business from its specialty pharmaceutical business, funding the new company with about $150 million in cash. The transaction will result in two independent companies. Enzon CFO Craig Tooman will assume the role of president and CEO of the specialty pharmaceutical business, while current Enzon CEO Jeffrey Buchalter will become the chief executive of the new biotechnology business.
Enzon also said on Wednesday that for its first quarter, the company reported profit of $1.5 million, or 3 cents a share, vs. a loss of $2.8 million, or 6 cents a share, a year prior. Enzon shares rose 1% to $9.26 Wednesday.
Cephalon and Enzon did little to help the Nasdaq biotechnology index, which was down 2.3% at 792.92.
One component tugging at the index,
said Tuesday post close that it turned a profit in the recent quarter. The company reported earning $15.4 million, or 27 cents a share, vs. a loss of 26 cents a share a year prior. Onyx reported net revenue from its joint venture business with German company
for anti-cancer drug Nexavar, of $37.7 million, vs. $3 million a year earlier.
According to the Thomson Financial consensus target, analysts were expecting a loss of 6 cents a share on revenue of $11.7 million. After opening the session on a gap higher, shares shed 5.7% to $ 35.79 Wednesday.
In other earnings,
( OSIP) got a quarterly boost from strong sales of its partnered cancer drug Tarceva. The company earned $29.2 million, or 49 cents a share, on revenue of $90.7 million. Analysts were looking for earnings of 45 cents a share on $88.9 million in revenue.
OSI shares rose 4.4% to $ 36.41 Wednesday.
( ZGEN) reported a widened loss on Tuesday after market close but still beat Wall Street estimates. The company reported a loss of $40.9 million, or 60 cents a share, vs. a loss of 49 cents a share a year prior. Revenue increased to $13.5 million from $5.2 million, surpassing the Thomson Financial consensus target of a loss of 57 cents a share on revenue of $10.9 million.
Citigroup upgraded the stock to hold from sell. Shares traded up 2.1% at $8.42.
Moving the other direction, development stage biotechnology company
saw shares fall 11.7% to $6.90, after reporting a widened loss. On Tuesday post close the company reported a net loss of $41.3 million, or 39 cents a share, compared with a loss of $24.2 million, or 25 cents a share, in the year-ago period due to increased R&D spending. Revenue was $27.9 million, down from $28.1 million a year prior.
In other health stocks,
earned $26.1 million, or 42 cents a share, in its fourth quarter, down from $29.8 million, or 45 cents a share, in the year-ago period. But the company reported adjusted profit of $36.4 million, or 59 cents a share, on revenue of $375 million, topping Wall Street analyst estimates of earnings of 50 cents a share on $361.6 million in revenue. Shares ended up 8.5% at $29.90.