Encysive Pharmaceuticals ( ENCY) climbed 37 cents, or 21.8%, to $2.06, after announcing it retained Morgan Stanley to evaluate its strategic alternatives . On the other end, Metabasis Therapeutics ( MBRX) lost $3.91, or 56.7%, to $2.99 after disappointing phase II results from type 2 diabetes candidate and news that Schering-Plough ( SGP) terminated its drug development agreement with the company on a hepatitis B treatment. On the earnings front, Medtox Scientific ( MTOX) lost $5.66, or 21.2%, to $21.02. The company reported net income for the quarter ended June 30 of $1.8 million, or 20 cents a share, compared to $1.3 million, or 15 cents a share, in the year-ago period. The Thomson Financial consensus target was 22 cents a share for the quarter. Additionally in earnings, Johnson & Johnson ( JNJ) reported earnings of $3.1 billion, or $1.05 a share, for the quarter in comparison to $2.9 billion, or 98 cents a share, in 2006, and the Thomson Financial consensus target of $1 a share. Shares of the company, however, were down $1.17, or 1.8%, to $62.64. Forest Labs ( FRX) earned $268 million, or 83 cents a share, in the quarter ended June 30, compared to $200 million, or 62 cents a share, in the year-ago quarter. The company beat the consensus target of 77 cents a share, but was down 88 cents, or 1.9%, to $45.79.
Stocks soar as the gross domestic product rises at an annualized rate of 3.5% in the third quarter and continuing jobless claims fall. Gregg Greenberg recaps the action in The Real Story video (above).