NEW YORK (
) -- Biotech stocks were mostly lower Tuesday, following the broader equities markets into the red.
The Nasdaq biotechnology index was slumping by more than 16 points to 914.06.
Among the sharpest decliners was
, which said Tuesday that it will refinance by offering $250 million in convertible senior notes, a move that could dilute shareholders. The notes will be convertible into cash or common stock or both in combination. Cubist will use the proceeds to pay down other debt.
In recent trades, shares of Cubist were falling more than 6% to $23.65. About 2.6 million shares had changed hands by mid-afternoon, more than five times the daily average turnover in the name.
The company, which makes an antibiotic called Cubicin for the treatment of blood infections,
that surpassed Wall Street's profit targets, but missed on revenue.
Cubist has two drugs in its development pipeline aimed at defeating drug-resistant bacteria. The company expects to file a new drug application for one by the end of 2013. A diarrhea treatment is in preclinical trials.
Other decliners Tuesday included
, both lower by about 3%, and
which was shedding nearly 6%. On Monday, Lexicon shares added 4% on heavy volume but no news, though the company's boss, Arthur Sands, is supposed to give a speech at the Biotech Industry Conference in New York on Friday.
Elsewhere in the universe of developmental pharmacology, stocks trading in the green stood out.
shares were rising 3% to $6.95 on heavier-than-average volume; the company on Tuesday said "the first patient has been dosed" in a Phase II clinical trials of its "novel, investigational cancer vaccine," known for the time being as MKC1106-MT.
Much more relevant to MannKind's immediate prospects, though, will be the Food and Drug Administration's decision in December on whether to approve the company's insulin inhaler, Afrezza.
-- not to be confused with JPM, as in
-- initiated coverage of MannKind with an outperform rating.
As it happens, JMP launched coverage of a few biotechs Tuesday, sticking market perform ratings on
. Biodel shares were rising 4% to $4.16 Tuesday afternoon, while Halozyme lost ground, falling 3% to $7.75.
Biodel faces an FDA approval decision for its fast-acting insulin product Linjeta later in October. A Phase III trial of the treatment in India failed to meet a non-inferiority test when going up against
Humulin, though Biodel has argued that a screw-up of blood samples in India led to the unsatisfactory results.
-- Written by Scott Eden in New York
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