Mid-caps performed best last
quarter, with four companies gaining more than 50%. Other segments largely held
on to their 1Q gains, except for companies valued below $200 million, which
fell 15% in the quarter and finished under water for the half (see "Results
by Market Cap," A30).
Pharmaceuticals Inc., which had barely broken into the $500-$999
million segment at the beginning of last quarter, was the biggest winner going
away. The biotech ran up 224% to a $2 billion valuation on a favorable FDA
advisory committee vote in May and last week's approval of obesity drug Belviq
lorcaserin. Arena and partner Eisai
Co. Ltd. will announce a launch timeline after the U.S. Drug
Enforcement Administration completes its review of the drug, which Arena
estimates will take four to six months. The DEA has classified Belviq as a
class IV scheduled drug.
The steepest drop in the $500-$999 million market cap group
came from HCV play Achillion
Pharmaceuticals Inc. Its 35% decline started on April 4, when the European
Association for the Study of the Liver published abstracts. It
continued through the April 21 presentation of Phase IIa data for HCV NS3
protease inhibitor ACH-1625, and the company's explanation a few days later
that the lackluster data had been adversely affected by patients who dropped
out for reasons unrelated to the trial. In June, Elizabeth Olek resigned as CMO
and SVP of clinical development.
Three of the quarter's biggest
gainers came from the $1-$4.9 billion group, which rose 5.4% on the quarter and
was up 15.1% at the half.
The top performer in this group was Pharmacyclics
Inc., with a 97% gain driven by data for ibrutinib. In early June at
Society of Clinical Oncology (ASCO) meeting and in mid-June at the European
Hematology Association, the company presented Phase Ib/II data for the
Bruton's tyrosine kinase (Btk) inhibitor to treat chronic lymphocytic leukemia
(CLL) and small lymphocytic lymphoma (SLL). Pharmacyclics and partner Johnson
& Johnson have said they will proceed with Phase III testing.
Pharmaceuticals Inc. was a close second, up 76%. Almost all the gains
came after FDA's Oncologic Drugs Advisory Committee voted in favor of Kyprolis
carfilzomib to treat relapsed and refractory multiple myeloma (MM). The
selective proteasome inhibitor has a July 27 PDUFA date.
Next was Human
Genome Sciences Inc., which added 59% on a hostile takeover bid from GlaxoSmithKline
Pharmaceuticals Inc. gained 13% on renewed takeout rumors that were
finally consummated after market close last Friday when Bristol-Myers
Squibb Co. announced an agreement to acquire the diabetes company in a
two-step deal involving AstraZeneca
The biggest losers in this group include Halozyme
Therapeutics Inc., which shed 31%. Most of that haircut came after the
biotech and Baxter
International Inc. said FDA needed additional information before it can
complete a review of HyQvia, a subcutaneous immune globulin plus rHuPH20 enzyme
for primary immunodeficiency disorder. According to the partners, FDA did not
issue a complete response letter.
Corp. also lost 31% on a series of disappointments. First, the company's
1Q earnings announcement did not raise its 2012 sales guidance of "modest"
quarter-over-quarter growth for Provenge sipuleucel-T in castration-resistant
prostate cancer (CRPC).
The biotech then became the
subject of an SEC investigation, the focus of which has not been disclosed.
The shares continued dropping on enthusiasm for prostate
cancer competitors Zytiga abiraterone acetate from J&J and enzalutamide
Inc. Both had data at ASCO.
Medivation tacked on a tidy 22%
The over $5 billion segment was pulled down by Celgene
Corp. and Illumina
Celgene shed almost $6 billion
(20%) in market cap on a 1Q earning miss and withdrawal of a European
application to extend the label of MM drug Revlimid lenalidomide to newly
Illumina lost 23% on the quarter after Roche
abandoned its hostile takeover bid. The company had been trading above Roche's
final offer of $6.3 billion, but closed the quarter at $5 billion.
Despite an 8% drop in the last week of the quarter, Vertex
Pharmaceuticals Inc. was the biggest winner in the group. Last week,
the biotech's shares declined after reporting final Phase II data for VX-809 /
Kalydeco ivacaftor in cystic fibrosis (CF) (see B22).
Vertex still finished up 36% on
the quarter, but it had added almost 60% at its 2Q peak between the two May
Among the small caps, partners Aeterna
Zentaris Inc. and Keryx
Biopharmaceuticals Inc. fell the most on an April Phase III trial miss
for perifosine to treat refractory metastatic colorectal cancer (mCRC). They
dropped 76% and 63%, respectively, on the quarter and mutually terminated a
deal related to the compound in May.
Stem cell play Osiris
Therapeutics Inc. rose 115% to a $360 million market cap after
receiving conditional approval in Canada and provisional approval in New
Zealand for Prochymal remestemcel-L to treat acute graft-host disease (GvHD) in
children. The company said these are the first regulatory approvals for a
manufactured stem cell product.
Pharmaceuticals Inc. (NASDAQ:ACHN), New Haven, Conn.
Zentaris Inc. (TSX:AEZ; NASDAQ:AEZS), Quebec City, Quebec
Society of Clinical Oncology (ASCO), Arlington, Va.
Pharmaceuticals Inc. (NASDAQ:AMLN), San Diego, Calif.
Pharmaceuticals Inc. (NASDAQ:ARNA), San Diego, Calif.
plc (LSE:AZN; NYSE:AZN), London, U.K.
International Inc. (NYSE:BAX), Deerfield, Ill.
Squibb Co. (NYSE:BMY), New York, N.Y.
Corp. (NASDAQ:CELG), Summit, N.J.
Corp. (NASDAQ:DNDN), Seattle, Wash.
Co. Ltd. (Tokyo:4523; Osaka:4523), Tokyo, Japan
Association for the Study of the Liver (EASL), Geneva, Switzerland
Hematology Association (EHA), The Hague, the Netherlands
plc (LSE:GSK; NYSE:GSK), London, U.K.
Therapeutics Inc. (NASDAQ:HALO), San Diego, Calif.
Genome Sciences Inc. (NASDAQ:HGSI), Rockville, Md.
Inc. (NASDAQ:ILMN), San Diego, Calif.
& Johnson (NYSE:JNJ), New Brunswick, N.J.
Biopharmaceuticals Inc. (NASDAQ:KERX), New York, N.Y.
Inc. (NASDAQ:MDVN), San Francisco, Calif.
Pharmaceuticals Inc. (NASDAQ:ONXX), South San Francisco, Calif.
Therapeutics Inc. (NASDAQ:OSIR), Columbia, Md.
Inc. (NASDAQ:PCYC), Sunnyvale, Calif.
(SIX:ROG; OTCQX:RHHBY), Basel, Switzerland
Pharmaceuticals Inc. (NASDAQ:VRTX), Cambridge, Mass.