Hep C Developments Lead Biotechs Down

by H.S. Ayoub, DMD
BioHealth Investor



The Dow Jones was down by 450 points early Wednesday before finishing the day up by almost 300 points in a second wild trading session in a row since the Fed cut rates by 75 points early Monday. Nasdaq also gained big rising more than 1%.

But the major biotech indices did not follow along as the Amex Biotech Index (BTK), heavy with large cap biotechs, lossed more than 2%, while the Nasdaq Biotech Index (NBI) slipped 0.30%.

Leading biotechs downward was Human Genome Sciences (HGSI), whose stock lossed more than 40% on the day following a press release by the company announcing that it will have to lower the dosing of its experimental hepatitis C drug Albuferon currently in phase 3 clinical trials, due to serious lung-related adverse events. The stock closed the regular session at $5.62, down $4.40.

Coincindentally, Vertex Pharma (VRTX) finished the day down more than 10% as the company's own hepatitis C experimental drug will be tested in further trials, as the previously announced clinical data in November had mixed results. This 10% drop added to the stock's decline since November leading to a 2-year low of under $20 a share as analysts were expecting the initiation of new trials. New FDA filings for the drug are now expected by 2010. Shares closed at $20.02.




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