Random news and a big jury decision refreshed health stocks Tuesday, a mild bump for indices that slumped at the week's start. First, the exception: Delcath Systems' ( DCTH) shares plunged after the Food and Drug Administration recommended the company suspend mid- and late-stage trials and submit an analysis of adverse events in advance of a meeting with the agency regarding gastrointestinal safety concerns. The company previously reported four serious adverse events, two of which resulted in deaths, to the FDA and the National Cancer Institute (NCI) Institutional Review Board (IRB) as well as to the Data Safety Monitoring Board (DSMB) for the phase III trial. The company said it has amended the protocols to prevent future adverse events and those changes were approved by the NCI IRB and implemented into the trials. Shares dove $1.25, or 47.9%, to $1.39. Other health stocks, however, saw green after various decisions by juries, boards and the American Society of Clinical Oncology. Amgen won out in the patent infringement trial with Roche. A Boston jury ruled in Amgen's favor, determining that Roche's Mircera infringes on 11 of Amgen's patent claims. Amgen said it will seek an injunction to prevent Roche from commercializing Mircera in the U.S. That hearing is scheduled for Nov. 15. Amgen got a modest rise of $1.36, or 2.4%, to $57.48.
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).