Gains Followed By Profit-Taking At Ilex

Investors sold off shares in Ilex Oncology in what analysts termed ahealthy move after several days of significant gains.

The profit-taking move came after shares rose to a post-offering high of $24.75 per share ahead of an anticipated recommendation for approval of the company's lead cancer drug methyl-glyoxyl-bisguanylhydrazone (MGBG) for the treatment of AIDS-related lymphoma at an upcoming US Food and Drug Administration panel meeting. Investors had paid $12 per share for the stock in February's initial offering. On June 16 the share price closed at $23, down 1.6%.

MGBG, the first polyamine inhibitor used to stabilize DNA in rapidly-dividing cancerous cells, isn't without its detractors, according to Ian Sanderson of Cowen & Co, who noted that Ilex can expect some criticism from panel members. The stock may have been moving too aggressively recently, he said, and the sell-off put the stock in more realistic territory.