NEW YORK: equity prices fell for all but one of the reporting days to May 22, the one exception being May 19, in what was described as one of the Dow Jones worst losing streaks since September 1994. The Dow ended 2.6% lower overall, with pharmaceutical and biotechnology stock also decimated. Of those issues tracked, 37 declined and only four managed a rise, and what gains there were, were pretty small.
The best showing came from Genzyme, which edged up 3.8%, on the report of a positive safety profile for its Campath MS and also the firm's release of two new molecular tests. US Food and Drug Administration approval of Barr Laboratories' application for non-prescription sales of the emergency contraceptive Plan B for girls and women aged 17 and older helped lift its share price 3.2% over the week, and the stock rebounded slightly from its previous week's 11.3% fall. The worst performer was Vivus, which fell 11.8%, as investors took profit after the firm's 41.7% leap the previous week.
During the remainder of 2006, pharmaceutical companies will continue to face a number of common issues, according to Al Rauch of AG Edwards. Drugmakers are expected to benefit marginally from the implementation of the Medicare Part D: Prescription Drug Benefit Plan, he said, adding that he expects this benefit to significantly reduce the political pressure to implement a plan allowing drug importation. What else does he see in the near-term future for the sector? While he expects the Food and Drug Administration to continue to review drugs for action within 10 months under the Prescription Drug User Fee Act guidelines, he forecasts a continued heightened concern over drug safety and the high number of Black Box warnings from the FDA to persist. And the upcoming PDUFA renewal could create some added political noise as the industry and legislators try to push for their specific agendas to be added to the new agreement, including requiring post-approval clinical trials. Other bills may deal with the safety of drugs in the marketplace, and increased support for the FDA's Critical Pathway Initiative is predicted, Mr Rauch said.
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Stock Commentary - New York week to May 22, 2006
NEW YORK: equity prices fell for all but one of the reporting days to May 22, the one exception being May 19, in what was described as one of the Dow Jones worst losing streaks since September 1994. The Dow ended 2.6% lower overall, with pharmaceutical and biotechnology stock also decimated. Of those issues tracked, 37 declined and only four managed a rise, and what gains there were, were pretty small.
The best showing came from Genzyme, which edged up 3.8%, on the report of a positive safety profile for its Campath MS and also the firm's release of two new molecular tests. US Food and Drug Administration approval of Barr Laboratories' application for non-prescription sales of the emergency contraceptive Plan B for girls and women aged 17 and older helped lift its share price 3.2% over the week, and the stock rebounded slightly from its previous week's 11.3% fall. The worst performer was Vivus, which fell 11.8%, as investors took profit after the firm's 41.7% leap the previous week.
During the remainder of 2006, pharmaceutical companies will continue to face a number of common issues, according to Al Rauch of AG Edwards. Drugmakers are expected to benefit marginally from the implementation of the Medicare Part D: Prescription Drug Benefit Plan, he said, adding that he expects this benefit to significantly reduce the political pressure to implement a plan allowing drug importation. What else does he see in the near-term future for the sector? While he expects the Food and Drug Administration to continue to review drugs for action within 10 months under the Prescription Drug User Fee Act guidelines, he forecasts a continued heightened concern over drug safety and the high number of Black Box warnings from the FDA to persist. And the upcoming PDUFA renewal could create some added political noise as the industry and legislators try to push for their specific agendas to be added to the new agreement, including requiring post-approval clinical trials. Other bills may deal with the safety of drugs in the marketplace, and increased support for the FDA's Critical Pathway Initiative is predicted, Mr Rauch said.
This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.
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