Biotech and pharma stocks were smashed with the broader markets Monday as the House rejected an economic bailout plan. The Nasdaq and Amex biotechnology indices were down 3.3% and 3%, respectively. Biotech staple Genentech ( DNA) shed 6.46%, Amgen ( AMGN) gave up 8.52% and Gilead's ( GILD) shares were off by 12.75%. Biogen Idec. ( BIIB) shares lost 1.77%, to $48.89. The Amex pharmaceutical index faired worse than the biotech indices, falling 5.45%, to 282.94. Among those hit the hardest, Sanofi Aventis ( SNY) gave up 8.06% and GlaxoSmithKline ( GSK)fell 6.34%. A few news items: The drama drags on for ImClone ( IMCL) investors. The company said Monday that its mystery $70-a-share bidder will either make a firm proposal or withdraw its offer by Wednesday. Thus, investors may have to wait until Wednesday, but should find resolution. Of course, Bristol-Myers Squibb ( BMY), which has a standing hostile tender for $62 a share, is also eager for word. ImClone shares traded down $1.42, or 2.24%, to $61.96, while Bristol shares were off 97 cents, or 4.7%, at $19.85. Wuxi PharmaTech ( WX) and Covance ( CVD) said Monday that they'll no longer pursue a joint venture in China and the U.S. Wuxi shares fell $2.11, or 11.8%, to $13.83. The company said it will return to its original plan to build and operate a 323,450-square-foot facility in Suzhou, China, set to open in the second half of 2009. Covance also said it will revert to its original plan to build a world-class preclinical facility in the region. Covance shares fell $2.09, or 2.27%, to $89.84.
Shares of Columbia Laboratories ( CBRX) fell after the company announced that a midstage study on Lidocaine as a treatment for dysmenorrhea didn't achieve its primary goal. Dysmenorrhea is characterized by uterine cramping and pain before and during menstruation. Caris and Co. downgraded the company to above average from buy. Shares were down 96 cents, or 27.75%, to $2.50. One success story on Monday, investors sent shares of Repros Therapeutics ( RPRX) up 54 cents, or 8.88%, to $6.62. The company announced that it will sell 2.4 million shares of common stock at $6.50 a share for an aggregate $15.6 million financing under a previously announced shelf registration statement. The sales are expected to close on Friday. Repros plans to use the proceeds from the financing for research and development, including the ongoing pivotal phase III trials of its lead product candidate, Proellex, and for working capital and general corporate purposes.