( KV) was the best-performing drug/biotech stock in the third quarter. The troubled drugmaker's stock price rose 185%, sparked by U.S. regulatory approval to re-launch products that had been pulled from the market earlier due to manufacturing problems.
Bookending KV Pharma's resurgence was the poor performance of
( ICGND), which lost 59% of its value in the third quarter after an experimental epilepsy drug encountered safety problems during a clinical trial.
Overall, the Nasdaq Biotechnology Index rose 12% in the third quarter, matching the performance of the Nasdaq and beating slightly the 11% gain made by the S&P 500. Like the market overall, August and September were especially good months for biotech and drug stocks.
Acquisitions helped two other drug stocks run to the top the quarter's best-performance list.
( ZGEN) closed the quarter up 141% due to
$885 million, or $9.75-a-share, takeover offer in September.
( OSTE) shares were up 126% on a $6.50-a-share buyout from
Rounding out the top 10 best-performing biotech/drug stocks in the third quarter, according to CapitalIQ:
( NLTX) (+110%),
( ISTA) (+94%),
( CYPB) (+76%).
was the second-most damaging stock for drug and biotech investors in the just-closed quarter, losing 56% after a U.S. advisory panel voted down the company's weight-loss drug lorcaserin.
shares fell 56% in the quarter on the poor launch of its ovarian cancer test.
Rounding out the quarter's worst biotech and drug stocks, according to CapitalIQ:
Molecular Insight Pharmaceuticals
( MIPI) (-50%),
( EPCT) (-36%) and
--Written by Adam Feuerstein in Boston.
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