FRIGITRONICS AND MYLAN PACE AUGUST HEALTH CARE STOCK REBOUND; 37 ISSUES UP
FRIGITRONICS AND MYLAN PACE AUGUST HEALTH CARE STOCK REBOUND; 37 ISSUES UP Frigitronics (up 10 to 33-7/8) and generic mfr. Mylan (up 7-3/4 to 27-5/8) paced rebounding pharmaceutical and health care issues during August. Following a July during which declining issues outnumbered advances 30 to 12, in August 37 stocks moved ahead, 31 a point or more, while only 5 declined and one remanded unchanged. Frigitronics moved up during the month that Cooper Labs disclosed that it has increased its investment in the firm to over 11% (350,000 shares). The 10-point gain boosted Frigitronics valuation by 41.2% to over $107 mil. With the continued favorable prospects for an ANDA bill -- the measure passed the Senate Aug. 10 -- generic drug stocks performed strongly. In addition to recent strong sales and earnings, Mylan is viewed as an initial prime beneficiary of the legislation with a generic version of Dyazide. After splitting 3-for-2 on Aug. 1, the stock advanced to close to its pre-split level of 29-3/4. Par's valuation climbed 44.7% to $70.4 mil. on the strength of its recent launch of generic indomethacin. The firm posted more than $1 mil. in first day sales of the product. The initial indomethacin sales nearly equaled the firm's monthly volume over the previous quarter. Also performing strongly were LyphoMed (up 3 to 14-7/8, Zenith [up] 2 to 16-1/2), and contract mfr. KV (up 1-1/2 to 8). Biotechnology stocks recouped some of the losses incurred in July. Leading the group's advance were Hybritech (up 3-1/4 to 14-1/4), Viratek (up 2-1/4 to 14-3/4), and Enzo Biochem [up] 2 to 14-1/4). Biogen, which signed a joint development agreement with SmithKline Beckman for tissue plasminogen activator and received a product patent for alpha interferon from the European Patent Office added 1-1/4 to 8. Also performing strongly were Cetus, which gained 1-7/8 to 11-3/8, Immunex (up 1-1/4 to 5-5/8) and Genentech (up 1 to 33-1/4). Glaxo (up 1-1/2 to 12-1/2) received a bumper crop of good regulatory news during the month. FDA gave final marketing approval to the beta blocker labetalol, which is co-marketed with Schering-Plough, and cleared the bronchodilator Ventolin for use in a new indication, exercise-induced bronchospasm. The agency's Gastrointestinal Drugs Advisory Cmte. also recommended that Zantac be approved for use in a once-a-day regimen. The Diversified Component's decline was due to heavily weighted Beecham, which slipped 5/8 to 4.5. Only one other Diversified issue, Chattem, lost ground in August. Chattem was off 1/2 to 15-3/4. All eight whslrs. moved up a point or more, with Spectro (up 3-3/4 to 26-5/8) posting the largest advance. Also gaining at least three on the month were S-P Drug (up 3-1/4 to 14), DurrFillauer (up 3-1/8 to 14-1/4) and Bindley Western (up 3 to 21). FoxMeyer, which picked up its fourth whslr. in 12 months, Yahr-Lange, and reported net income and volume gains for the first quarter ended June 30, added 1 to 24-1/2.
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