Here’s a look at recent major developments and share moves in biotech stocks:
Enzo Biochem (NYSE:ENZ): Enzo Biochem shot up 21% on Friday following a positive ruling on a patent suit against Life Technologies (NASDAQ:LIFE), formerly Applera, and subsidiary Tropix. A jury ruled that Applera infringed Enzo patents on technologies related to compounds used in DNA sequencing systems. Enzo has been awarded $48.6 million in direct infringement penalties — just less than half ENZ’s 2011 revenues — and Enzo expects it could receive tens of millions of dollars in a pre-judgment award. The company also said it plans to seek other related damages based on the jury’s ruling, and it believes the verdict will help other ongoing litigation.
Abiomed (NASDAQ:ABMD): Abiomed crashed 31% Thursday on a pair of announcements. It said in its fiscal Q2 earnings report that the federal government is investigating the marketing of Impella 2.5, a temporary heart device that assists with circulation, though it did not release further details. ABMD also said it believed the FDA was going to review reclassifying Impella as a Class III device. According to Larry Huston at Forbes, that “would require FDA clearance using the more stringent premarket approval (PMA) process instead of the current, less demanding 510(k) premarket notification process.” ABMD finished the week down more than 26%.
Pain Therapeutics (NASDAQ:PTIE): Comments from Pfizer’s (NYSE:PFE) Thursday’s Q3 earnings call regarding Pain Therapeutics’ Remoxy — a form of oxycodone designed to reduce potential abuse — sent PTIE shares down 36% Thursday. Pfizer, which is partnering with PTIE, said Remoxy will have to undergo three more studies before an application for FDA approval on the drug is resubmitted. The studies are expected to be completed in March 2013, when Pfizer says it will make a “go/no-go decision” on the drug’s fate. Also jarring investors was Pfizer’s referral to Remoxy as a “challenging” asset. PTIE shares ended the week down almost 38%.
Impax Laboratories (NASDAQ:IPXL): Impax stock shed as much as 14% before leveling off to a 5% decline Wednesday following a third-quarter earnings miss and weak fourth-quarter forecast. IPXL cited strong sales of migraine drug Zomig for a 21% increase in revenues, but adjusted profits of $32.5 million, or 48 cents per share, came in a penny short of analyst EPS estimates. The company also said it expected competition with fenofibrate (for high cholesterol and triglyceride) and generic Adderall XR (ADHD, narcolepsy) to weigh on Q4 revenues. IPXL finished off 16% for the week.
BioCryst Pharmaceuticals (NASDAQ:BCRX): BioCryst shares were battered by almost 30% on Wednesday after the company withdrew its Investigational New Drug application for its hepatitis C treatment, BCX5191. The FDA expressed concerns about the toxicity of BCX5191. BCRX finished down 37% for the week.