By Val Brickates Kennedy
Drug stocks outpaced their biotech counterparts in a broad-based
move into positive territory Monday, gaining in the wake of
comments made by Federal Reserve chief Ben Bernanke that the
recession could end later this year.
The Amex Pharmaceutical Index (DRG) advanced 1.2% to 242.69 in
early action, while the Amex Biotechnology Index (BTK) edged up
0.3% to 604.83. The Dow Jones Industrial Average rose 0.7% to 7271,
extending a modest four-session winning streak from last week.
Big Pharma made gains on both sides of the Atlantic.
Shares of Bristol-Myers Squibb (BMY), Abbott Laboratories (ABT),
Pfizer Inc. (PFE) and Eli Lilly & Co. (LLY) led among U.S.
drugmakers, all moving up about 2%.
Meanwhile, AstraZeneca (AZN), GlaxoSmithKline (GSK), Novartis
(NVS) and Sanofi-Aventis (SNY) were the biggest winners on the
European side, with their U.S.-listed shares all up at least
3%.
United Therapeutics (UTHR) was the notable loser among the
larger-cap biotechs, with shares tumbling 9% to $60.49.
Earlier Monday, United Therapeutics said the Food and Drug
Administration may not approve its Tyvaso by the application's
April 30 deadline because of lingering questions about the
product's delivery system.
The company said it hopes to resolve any delay within "a few
months." A version of the drug is already marketed under the name
Remodulin.
Shares of CV Therapeutics (CVTX) also dropped, dragged 5% lower
to $19.70 after Japan's Astellas Pharma (ALPMY) said it was
dropping its $16-a-share hostile bid for the firm.
Last week, Gilead Sciences (GILD) struck a friendly deal with CV
to acquire the company for $1.4 billion, or $20 a share. Shares of
CV had trended higher late last week in anticipation of a possible
counterbid by Astellas.
-Val Brickates Kennedy; 415-439-6400;
AskNewswires@dowjones.com