Nasdaq Biotech Index Drops As Angiotech and Epix Plummet

The NBI lost ground for the second day in a row ending trading less than 1% down. Leading the way were Angiotech Pharmaceuticals (ANGP) and Epix Pharmaceuticals (EPIX), as both stocks sank more than 15% each at end of trading.

Angiotech shares dropped after Boston Scientific (BSX) warned Wallstreet that its forecasted revenue numbers will fall short of earlier expectations as recent research has suggested drug-coated cardiovascular stents, such as those made by BSX, can actually increase the risk of blot clots. Angiotech makes biomaterials for the biotech industry, and a large chunk of its revenue is derived from paclitaxel, a stent coating agent.

Epix on the other hand dropped more than 18% as the company announced late Thursday that its Phase 3 clinical trial of PRX-00023, a serotonin agonist did not find statistical difference in anxiety patients taking placebo. The company said that it will refocus efforts towards using PRX-00023 in depression instead. This is a big blow surely as investors thought they were close to a marketable agent, but the biotech industry proves once again that a risk is a risk no matter what phase the research is currently in.

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