Biotech and Pharmaceutical Stocks Rise on Strong Earnings and FDA Decisions

Biotech and pharmaceutical stocks soared on Monday, driven by impressive earnings reports and favorable decisions from the US Food and Drug Administration. Teva Pharmaceuticals and U.S. Food and Drug Administration decisions for Amgen Inc. helped boost the sector, with the Amex pharmaceutical index rising 1.41 points to 329.66 and the Amex Biotech Index adding 2.37 points to 623.72.

Key Takeaways:

• Teva Pharmaceuticals reported a 5% increase in second-quarter profit due to growth outside the U.S., with shares rising 15 cents to $31.63.
• Amgen stock rose 43 cents to $80.20 after a cancer drug it is developing with Abgenix Inc. got fast-track approval status from the FDA.
• Watson Pharmaceuticals' stock was 11 cents, or 0.3%, higher at $33.51 after the FDA cleared two generic contraceptives produced by the company.
• Human Genome Sciences received a $7 million milestone payment from GlaxoSmithKline, causing shares to rise 2% to $14.96.
• Guidant Corp.'s stock rose 3.9% to $71.46 after the company won FDA clearance to resume sales of its Contak Renewal 3 family of defibrillators in the U.S.
• Analyst Glenn Reicin from Morgan stated, "A timely FDA approval has to be a good indicator that Guidant's relationship with the agency is either unharmed or on the mend."

Statistics:

• The Amex pharmaceutical index rose 1.41 points to 329.66.
• The Amex Biotech Index added 2.37 points to 623.72.
• Teva Pharmaceuticals shares rose 15 cents to $31.63.
• Amgen stock rose 43 cents to $80.20.
• Watson Pharmaceuticals stock was 11 cents, or 0.3%, higher at $33.51.
• Human Genome Sciences received a $7 million milestone payment from GlaxoSmithKline.
• Guidant Corp.'s stock rose 3.9% to $71.46.

Sources:

• Dow Jones Commodities News Select via Comtex, 08-01-05.
• Dow Jones Newswires, 08-01-05 1112ET.
• Copyright (c) 2005 Dow Jones & Company, Inc.