Stocks Fall Amid FDA Warnings and Bankruptcy Threats

Stocks of several major companies declined sharply in the trading day, with shares of Genentech falling nearly 3% after the FDA issued a warning about the cancer drug Avastin. The agency cautioned that the medication can raise the risk of deadly blood clots in arteries and increase the risk of chest pain and heart attacks. Boston Scientific's shares also plummeted, down almost 1%, following reports of injuries linked to its interix device used to treat acid reflux disease, and the recent recall of its popular taxus stent. US Airways' shares fell 56 cents as the airline's pilots' union warned that the carrier could file for bankruptcy protection by mid-September if it doesn't secure cost cuts.

Key Takeaways:

• The FDA issued a warning about Genentech's cancer drug Avastin, stating that it can raise the risk of deadly blood clots in arteries and increase the risk of chest pain and heart attacks.
• Boston Scientific's shares declined amid reports of injuries linked to its interix device used to treat acid reflux disease, and the recent recall of its popular taxus stent.
• US Airways' shares fell 56 cents as the airline's pilots' union warned that the carrier could file for bankruptcy protection by mid-September if it doesn't secure cost cuts.
• Genentech's shares closed down nearly 3% on the day, while Boston Scientific's shares fell almost 1%.
• US Airways has already gone in and out of bankruptcy since the September 11th attacks.

Statistics:

• Genentech's shares fell 2.8% on the day.
• Boston Scientific's shares declined 0.8%.
• US Airways' shares fell 56 cents.
• The FDA has issued multiple warnings about Avastin's risks.
• Boston Scientific's taxus stent was recently recalled.

Sources:

• CNNfn
• Genentech Inc.
• Boston Scientific Corporation
• US Airways Group Inc.
• CNNfn Transcript: Street Sweep, Christine Romans, Anchor, CNNfn.