Stock Commentary - Europe - week to Feb 23, 2009

EUROPEAN: bourses had another miserable week in the reporting period to February 23, as ongoing news of economic turmoil continued. However,  drug majors, although mostly lower, still managed to outperform their  domestic markets due to their defensive perception. Going into very  negative territory in BRUSSELS was Solvay, which plunged 14.6% after  posting 2008 results, that saw profits down 46% (see also page 4). In  FRANKFURT, Bayer down 6.2%, and Merck KGaA, 4.6% lower, both  outperformed the Xetra Dax' 9.9% crash. Evotec slumped 20.7% for no  apparent reason, while Stada Arzneimittel plunged 16.7%, not helped by  news that it is part of a group bidding $210.0 million for a stake in  Russia's largest drugs retailer, OAO Pharmacy Chain. Stada, Germany's  third-biggest generic drugs maker, fell to its lowest in more than four  years on concern its expansion in eastern Europe carries economic  risks.

LONDON: saw a spectacular 34.1% rise for Sinclair Pharma, boosted by  news of two product deals with US firm BMG Pharma, which provides the UK  company with significant pipeline development opportunities (see page  28). Elan suffered a sharp 12.3% decline, after falling over 9% the  previous week, despite reporting a narrower loss (Marketletter  February 23). Phytopharm gained 4.9% after a positive research note  from Edison Investment Research, following the company's interim  management statement, in which it said, after the disappointment of  Unilever pulling out of a deal on Hoodia, it would focus on developing  its Parkinson's and Alzheimer's disease candidate Cogane (PYM 50028)  and the neurotrophic factor inducer Myogane for amyotrophic lateral  sclerosis.