Stock Commentary - New York week to June 1, 2009

NEW YORK: equities moved higher on four of the reporting days to June 1, with the Dow Jones hitting a seven-month high on the last and up  5.4%  over the week. All but four of the drug and biotechnology stocks tracked  saw a rise, several of which were in double-digit percentage points.

There were some strong moves in the pharmaceutical sector, with  positive data on ArQule's ARQ 197 presented at the American Society of  Clinical Oncology 2009 meeting, held in Orlando, Florida (see also pages  19-20) helping to push the company's stock up 23.1% for the week.  Enrollment in Phase II trials is progressing, according to the  company. At the end of December, ArQule and Japan's Daiichi Sankyo  agreed to co-develop and co-commercialize the compound in most of the  world. Sepracor moved up 10% as the firm announced that the Food and  Drug Administration is reviewing its New Drug Application for Stedesa  (eslicarbazepine acetate). In late 2007, Sepracor acquired the rights to  the seizure medication for the USA and Canada. Vivus stock was up 18.6%  ahead of a presentation on Qnexa at the American Diabetes Association's  June meeting, taking place in Chicago. Some analysts feel the product is  the leading Phase III obesity candidate under development. After Par  Pharma announced that its revenue grew by 32% on a spectacular rise in  sales of metroprolol (a generic version of AstraZeneca's Toprol),  analysts began to raise their estimates for the company. Par also just  began shipping a a copy of of Johnson & Johnson's Risperdal  (risperidone) in three strengths. The firm's shares were up 10% for the  week. Though late-stage data presented at the ASCO indicated that OSI  Pharma's Tarceva (erlotinib) in combination with Avastin (bevacizumab)  increased the median survival rate for patients with advanced non-small  cell lung cancer, and the trial was stopped when it was clear that the  drugs were effective in slowing the disease, Stephen Willey of Thomas  Weisel Partners has lowered his rating on OSI's stock to market weight  from overweight. He told clients that side effects that had shown up in  the clinical studies will probably hold back use of the combination  product.