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.
