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Drug stocks climb; Novartis, Celgene gain
By Val Brickates Kennedy, MarketWatch
Last Update: 3:32 PM ET Mar 25, 2008
BOSTON (MarketWatch) -- Drug stocks climbed in midday action Tuesday as shares of Novartis AG gained in the wake of an approval by Canadian regulators of its blood-pressure medication Diovan to treat congestive heart failure.
The Amex Pharmaceutical Index $DRG inched up 0.4% to 300.7 and the Amex Biotechnology Index $BTK climbed 1.5% to 728.1 during a largely calm morning for the sectors on Wall Street.
Novartis NVS shares advanced 3% to $50.46. Early Tuesday, Novartis said Health Canada had approved Diovan for congestive-heart-failure patients who cannot tolerate ACE inhibitors, a popular class of heart medications.
Shares of Biovail Corp. BVF skidded 7% to $10.80. On Monday, Biovail said that it has agreed to pay $10 million to settle a Securities and Exchange Commission probe into its accounting practices from 2001 to 2003.
The SEC had also issued a civil complaint against four Biovail executives, including its former CEO, former CFO, current CFO and current controller. Biovail said that that complaint has not yet been resolved and that it has transferred its current CFO and controller to non-officer positions within the company.
Shares of Celgene Corp. CELG rose 2% to $61.39. The biotech group said that the FDA has granted orphan-drug status to its drug Amrubicin to treat small-cell lung cancer, the most prevalent form of the disease. The designation means the drug would enjoy seven years of market exclusivity if it is approved for that purpose.
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