Trial results depleted DepoMed ( DEPO) shares Tuesday, while other biotech stocks moved on varied news. DepoMed gave up 60% after announcing that a
phase III trial for Gabapentin GR, an investigative extended-release tablet for neuropathic pain, didn't meet its endpoint. The stock fell $2.93, to $2.00. DepoMed tugged at the Nasdaq Biotechnology index, which was down 3.69, or 0.45, to 811. Pained less severely, SonoSite ( SONO), fell $2.25, or 6.5%, to $32.34. The company, which develops and manufactures hand-carried ultrasound systems, said it plans to offer $150 million convertible senior notes due 2014. It will grant underwriters a 30-day option to purchase $22.5 million more to cover overallotments. SonoSite said it will use the proceeds to fund acquisitions and for general corporate purposes, and it may use a portion of the proceeds to enter into a convertible note hedge transaction with an affiliate of one of the underwriters, which would cover 67% of the notes converted. On the winning end Tuesday, Kensey Nash ( KNSY) benefited from cutting its losses. The company said it will end all activities on its embolic protection, or blood-clot prevention, platform, including a clinical trial for ProGuard. It's doing so in response to the changing market, to reduce costs and to allow its sales force to focus on its thrombectomy and chronic total occlusion platforms to surgically remove blood clots and clear blocked arteries. The medical technology company said it won't relaunch its TriActiv FX line in the U.S. and will stop offering the TriActiv ProGuard System in Europe. As a result, Kensey Nash expects ongoing savings of $3.6 million annually, or 20 cents a share. Kensey Nash rose $1.08, or 4%, to $28.41.
Also moving higher was Corcept Therapeutics ( CORT), which said Monday after market close that it received orphan drug designation from the Food and Drug Administration for Cushing's Syndrome treatment Corlux. The designation includes seven years of marketing exclusivity from the date of the drug approval, tax credits for the clinical trial costs, marketing filing fee waivers, and assistance in the drug development process from the FDA. It's designed to encourage companies to develop treatments for diseases or conditions affecting fewer than 200,000 patients in the U.S. Corcept rose 19 cents, or 7.6%, to $2.68. Elsewhere, moving its prospective merger along, Genzyme ( GENZ) said it finished its tender offer to acquire the shares of Bioenvision ( BIVN). On May 29, the company agreed to acquire Bioenvision in an all-cash transaction of around $345 million, or $5.60 for each outstanding common share and $11.20 for each outstanding preferred share. According to the agreement, Bioenvision will now prepare a proxy statement for its shareholders. The companies expect a merger vote before the end of the year. Genzyme was down 95 cents, or 1.6%, to $58.86, while Bioenvision edged down 5 cents, or 0.8%, to $5.90 on Tuesday. Also moving lower on continued merger prospects was eye-care product maker Bausch & Lomb ( BOL), whose shares were 1.6% lower at $70.21. The company has filed with regulators to hold a special shareholder meeting to vote on a $65-a-share cash takeover bid by Warburg Pincus. However, Bausch & Lomb said it remains in talks Advanced Medical Optics ( EYE), which last week offered $75 a share in cash and stock. Shares of Advanced Medical Optics were also lower, down 1.7% at $34.32.