Health-care stocks generally suffered the same fate Wednesday as the broader stock market, trading deeply in the red.
sank on news the Food and Drug Administration refused to approve the biotech company's experimental cystic fibrosis drug,
. The FDA informed Gilead in a letter that the inhaled antibiotic couldn't yet be approved and an additional clinical study would be needed.
Goldman Sachs, which rates Gilead a buy, trimmed its price target for the stock to $58 from $59 following the FDA letter, which Goldman says reduces 2008 and 2009 sales expectations for the drug. Gilead shares sank 5.6% to $47.04.
Gilead is a component of the Amex biotechnology index, which lost 4.7% to 772.22. The Amex pharmaceutical index, meanwhile, fell 2.6% to 289.80.
One of the few winners Wednesday was
, which won FDA approval for its abbreviated new-drug application (ANDA) for Risperidone. The drug, a treatment for schizophrenia and bipolar disorder, is a generic version of Risperdal. That brand-name drug, a product of
Johnson & Johsnon's
Janssen unit, generated annual sales of about $2.67 billion in the U.S., Mylan said. Mylan shares rose 1.6% to $11.02, while J&J shares edged down 0.4% at $69.54.
Amgen, which rose Tuesday on positive study data on bone drug denosumab, gave back that 6% gain on Wednesday, losing 6.5% to $61.60.
In M&A news, Canada-based
agreed to pay $100 million to buy Prestwick Pharmaceuticals, a privately held U.S. company that holds the Canadian and U.S. licensing rights to Xenazine. The FDA recently approved the drug, offering it orphan drug status, as a treatment of chorea associated with Huntington's disease. That designation gives the drug seven years of market exclusivity in the U.S. Canaccord Adams initiated coverage of Biovail with a buy rating Wednesday. The stock, however, sank 9% to $9.30.
In other analyst actions, Caris & Co. upgraded
from average to above average, and Roth Capital upgraded
from hold to buy. The upgrades provided no boost, however; Wyeth sank 2.8% to $37.80, and Alkermes fell 6.4% to $11.97.
This article was written by a staff member of TheStreet.com.