Tuesday, January 4, 2000
Genomics stock continued their internet-like advances over the holidays, with investors starting to look down into the lower tier of companies for genomics plays that had not yet moved.
Leading the pack was Genome Therapeutics (GENE), which soared
$11.188 (186 percent) to $17.188 on Christmas week on news of achieving a milestone
in its asthma genomics deal with Schering-Plough and announcing a $118 million
osteoporosis deal with Wyeth-Ayerst. GENE lost $1.063 to $16.125 last week.
Investors also discovered Lynx (LYNX), which added $17.25 (96
percent) to $35.25 on Christmas week before retreating $2.875 to $32.375 last
week. Myriad (MYGN) enjoyed a two-week gain, adding $11 (33 percent) to $44
on Christmas week, and another $2 to $46 last week.
Celera (CRA) surged $56 (64 percent) to $144 on Christmas week
on minimal news: it purchased gene and protein identification software from
Molecular Applications (see B3). Street talk was that trading was driven
by The Motley Fool's announcement that CRA had been added to the "rule breaker"
portfolio of the popular stock market web site. CRA added $5 to $149 last week.
Incyte (INCY) finally closed at $60 on Friday, posting an $8.438
(16 percent) gain on the week, after jumping as high as $73.125 on the Wednesday
before Christmas. Driving demand was news that INCY had identified mutations
in a gene involved in Type II diabetes (see B15).
Other genomics movers included CuraGen (CRGN), which added
$19.125 (42 percent) to $64.50 on Christmas week, and another $5.25 to $69.75
The group leaders were not ignored, as Millennium (MLNM), finished
last week at $122, up $2.875, after jumping $20.438 (21 percent) to $119.125
on Christmas week's FDA filing for Campath (see Ebb & Flow, below).
Affymetrix (AFFX) added $25.094 to $169.688 last week, after
soaring $33.094 (30 percent) to $144.594 on Christmas week, while Human Genome
Sciences (HGSI) gained $16.625 (12 percent) last week to $153.625, on top of
a $14.937 move on Christmas week.
Entering the 'new' Millennium
The genomics fever provided LeukoSite shareholders with a $275
million "millennium" bonus thanks to the strong stock move by suitor Millennium
(MLNM), which completed its stock acquisition of LeukoSite on Dec. 22. MLNM
had appreciated $36.219 (43 percent) to $119.688 since signing the deal on Oct.
14, giving LeukoSite shareholders $910 million worth of MLNM paper. The original
deal valued LKST at $635 million, using MLNM's Oct. 14 price of $83.469.