Vaccine makers boost U.S. pharma stocks

BOSTON - Vaccine makers helped boost the U.S. pharmaceutical benchmark index early Friday as shares of GlaxoSmithKline PLC (GSK 36.75, +0.19, +0.52%) , AstraZeneca PLC (AZN 43.34, +0.05, +0.12%) , Novartis AG (NVS 42.00, +0.05, +0.12%) and Sanofi-Aventis (SNY 33.37, +0.14, +0.43%) all gained in the wake of Thursday's declaration of a formal flu pandemic by the World Health Organization. The Amex Pharmaceutical Index (DRG 260.48, +3.17, +1.23%) rose 1% to 259.95 while the Amex Biotechnology Index (BTK 683.44, -5.46, -0.79%) slid 1.5% to 678.74. The Dow Jones Industrial Average back-tracked about 25 points to 8,747.

Drug stocks slide; Lundbeck sinks on drug woes

The Amex Pharmaceutical Index (DRG 253.84, -1.12, -0.44%) edged down 1% to 252.19 and the Amex Biotechnology Index (BTK 674.22, -4.58, -0.67%) eased 0.7% to 673.94. The Dow Jones Industrial Average (XX:DJII 11,229, -279.97, -2.43%) fell about 90 points to 8,675.

Shares of Lundbeck (HLUK.Y 18.85, -3.50, -15.66%) sank 17% to $18.60.

The Danish drugmaker said that two Phase III clinical trials for LuAA21004 had failed to show the drug was effective against a placebo in treating major depressive disorder. A third study indicated a higher dose might be needed.

As a result, Lundbeck said it will delay filing for U.S. approval for up to 24 months as it works out appropriate dosing for the product.

Lundbeck is developing the drug with Japanese drugmaker Takeda Pharmaceutical Co. Ltd. (TKPH.Y 18.80, +0.05, +0.27%) The product is also in Phase III testing for the treatment of generalized anxiety disorder.

Lundbeck already markets one of the world's most popular antidepressants, Lexapro.

Shares of Takeda dipped about 1% to $18.66.

On the upside, biotech group Micromet Inc. (MITI 5.00, +0.05, +1.01%) saw its U.S.-traded shares soar almost 17% to $5.37. The company reported positive Phase II data for its antibody-based treatment blinatumomab in the treatment of acute lymphoblastic leukemia.

Also on a roll were shares of tiny Keryx Biopharmaceuticals (KERX 1.35, +0.27, +25.00%) , up 22% at $1.31.

The biotech company reported favorable Phase II clinical results for its compound Zerenex in the treatment of dialysis patients. Keryx plans to move the product into Phase III testing.

Arena Pharmaceuticals (ARNA 5.20, +0.26, +5.26%) shares shot up 23% to $4.84. On Friday, Arena unveiled positive Phase III data for its weight-loss drug lorcaserin.

Dyax Corp. (DYAX 2.23, +0.10, +4.70%) shares leapt 12% to $2.09. The Cambridge, Mass.-based biotech firm released a favorable analysis of Phase III data for its drug DX-88, a treatment for the inflammatory disorder hereditary angioedema.

Shares of Xoma Ltd. (XOMA 1.20, +0.02, +1.70%) were also stoked, rocketing 20% to $1.27. Late Friday, Xoma released positive early-stage clinical data for its antibody-based therapy for diabetes, XOMA 052.

Drug stocks inch lower while broader market gains

The Amex Pharmaceutical Index (DRG 256.31, -1.02, -0.40%) and the Amex Biotechnology Index (BTK 685.34, +0.65, +0.09%) both slipped marginally in late-day action. The Dow Jones Industrial Average (XX:DJII 11,229, -279.97, -2.43%) was up about 60 points at 8,732.

Novavax Inc. (NVAX 3.20, -0.06, -1.84%) was the highflier among the smaller-cap biotech names, with shares soaring about 50% to $2.87.

The vaccine developer said that it has signed a deal with the National Institutes of Health to test its new VLP technology in the development of a vaccine to combat the H1N1 flu virus.

Novavax said it has already made pilot batches of the vaccine, which the Centers for Disease Control plan to test on animals.

Novavax's VLP technology is able to produce vaccines within just a few weeks, according to the company. Current production technologies for flu vaccines can take up to six months.

Shares of Antigenics Inc. (AGEN 2.63, -0.04, -1.50%) were on a roll for the fourth straight session Thursday morning before reversing course later in the day. At last check, shares were down almost 2% to $2.61.

Early Monday, Antigenics said an analysis of patient data showed that users of its kidney-cancer therapy Oncophage lived appreciably longer. Oncophage is currently approved only in Russia. The company has also filed for approval in the European Union.

Shares of Antigenics have gained almost 300% over the past 30 days.

Generex Biotechnology Corp. (GNBT 0.99, +0.16, +18.56%) shares shot up 30% to 60 cents.

The biotech said it plans to present positive mid-stage clinical data for its spray insulin product Oral-lyn at a scientific meeting of the American Diabetes Association, to be held from June 5 to June 9. As opposed to inhaled insulin products, Oral-lyn is sprayed in the mouth and does not penetrate the lungs

Broad sector stumbles; BioCryst soars on drug study

BOSTON - Drug stocks were mired in red Friday afternoon, but shares of BioCryst Pharmaceuticals soared on positive results from a study for the company's new lymphoma treatment.

The Amex Pharmaceutical Index ($DRG) slipped 1.5% to 248.21 and the Amex Biotechnology Index ($BTK) slid 1.7% to 611.94.

The Dow Jones Industrial Average (XX:DJII) declined almost 90 points to 8,244.

Most of Big Pharma was trading lower. Bristol-Myers Squibb (BMY), Eli Lilly & Co., (LLY) and Pfizer Inc. (PFE) were the lead decliners on the U.S. side, with shares down at least 2%.

Danish group H. Lundbeck A/S (HLUKY) was the mover of note among the large foreign drug makers, with shares falling about 3% to $22.90 after seeing two straight days of significant gains.

Alkermes, Amylin rally on FDA filing

BOSTON-Partners Alkermes Inc. (ALKS:9.15, +1.30, +16.6%) and Amylin Pharmaceuticals (AMLN:11.99, +0.41, +3.5%) rallied early Tuesday on news that they had filed for U.S. regulatory approval for their new long-acting diabetes medication exenatide LAR. The Amex Pharmaceutical Index ($DRG:242.14, +0.37, +0.2%) , meanwhile, was largely flat at 241.67 and the Amex Biotechnology Index ($BTK:625.36, -8.39, -1.3%) retracted 0.5% to 630.68. Likewise, the Dow Jones Industrial Average hovered near the flat line at 8,431. Shares of Alkermes shot up 21% to $9.47, while Amylin shares climbed 6% to $12.25. Shares of Eli Lilly & Co. (LLY:34.32, +0.51, +1.5%) , which is also a partner for exenatide, were up 1% at $34.07. 

Flu Fears Give Drug Makers Shot in Arm

Should the swine-flu outbreak turn out to be fleeting, so, too, could the rally in related big drug stocks.

Far be it for traders not to view any emergency as an opportunity, but big pharmaceuticals were among both the Dow Jones Industrial Average's and Standard & Poor's 500's best percentage gainers Monday. Wall Street traders are betting these companies can provide a cure to what sickens their portfolios.

Thanks to the push into big pharma, the Amex Pharmaceutical Index on Monday passed its 50-day moving average for the first time since early February and finished the day up 1.6%, at 236.98. The gains were relatively broad, with drug companies GlaxoSmithKline and AstraZeneca pacing the index.

But the possible increase of orders related to swine flu is far from determinable right now, and several pharmaceutical analysts said Monday that the impact could be minimal. A short-term flood of orders is unlikely to offset myriad other issues for pharmaceuticals, including the pressure from generic makers.

And, on a technical basis, these larger firms are pushing near important resistance levels on swine flu alone and likely to push back lower should the scare subside.

Glaxo, up 7.6% at $31.56, and AstraZeneca, up 3.7% at $36.20, are within $3 of late-January and early-February lows. The firms did move above their 50-day moving averages in the past two sessions, but it wasn't the first time this month both firms have moved above that level, with each struggling to stay above it for more than a couple of sessions.