Updated from 2:37 p.m. EDT with new stock prices
Biotech stocks hit a high for the week as investors applauded an acquisition and showed the same enthusiasm that graced the broader markets.
The Amex biotechnology index surged 35.83, or 4.8%, to 780.83, with some notable support from component
( MLNM), which rose nearly 50%.
Millennium Pharmaceuticals said Thursday that it will be acquired by Japan's largest drugmaker, Takeda Pharmaceuticals, in
-- the largest overseas acquisition by a Japanese drugmaker to date. Takeda is paying $25 a share, or a 53% premium to Millennium's closing price of $16.35 a share on Wednesday. Shares rose $7.99, or 48.9%, to $24.34.
Other stocks helping the BTK were
, up 5.8%, and
( OSIP), up 5%.
each cleared more than 2.6% on Thursday.
Pharma stocks were also green, particularly
( WYE) and
, which added 4.2% and 2.7%, respectively.
In a follow-up to previous day's news,
responded to the inhaled insulin drama that arose Wednesday when
announced a higher rate of lung cancer found in patients who took Exubera in clinical trials.
"To date with our product, we have seen no adverse effects on the measures of pulmonary function that have been reported to occur with Exubera," the company wrote in the release. "We are working closely with the DSMB and regulatory agencies in order to understand the implications of the Exubera data."
But, given the market sentiment, the company said it will suspend partnership discussions. "At this time, we believe that we will be unable to achieve an appropriate valuation for Technosphere Insulin until phase 3 data are available that confirm our belief in the safety and efficacy of Technosphere Insulin."
MannKind shares nudged up 18 cents, or 7.7%, to $2.53 on Thursday after plummeting nearly 60% on Wednesday. (Nektar shares also edged back up a little -- gaining 12 cents, or 2.2%.)
In Wall Street news, JMP Securities upped its price target for
to $30 from $25, and RBC Capital Markets hiked its target for
to $58 from $50.
Vertex was trading down 20 cents, or 0.8%, at $26.29, while Gilead was up $1.06, or 2.1%, at $52.09.