Pharma pulls down biotech

Biotech stocks were dragged down by a horrid day for big pharma, which was marked by a profit warning from Merck (MRK) and included disclosure of manufacturing issues for Schering-Plough (SGP). The BioCentury 100 index fell 2.3% on the day, less severe than the 3.6% decline in the Amex Pharma Index, but more than double the 1.03% and 1.2% declines by the Dow Jones Industrials and the NASDAQ Composite, respectively. Decliners outnumbered gainers 79-18 in the BC100.

Leading the decliners was Biogen (BGEN), which tumbled $6.93 (10%) to $59.87 on 9.2 million shares after complete results were announced showing that certain multiple sclerosis patients taking Rebif interferon beta-1a from Serono (SRA; SWX:SEO) did better than patients taking BGEN's Avonex interferon beta-1a in a 24-week trial. BGEN countered with questions about the scientific rigor of the presentation, citing the single-blind nature of the trial, which it said biased the results in favor of Rebif; the short duration of the trial; and the primary end point. ...