HOOK AND GENETECH LEAD BROAD RALLY ON OTC MONTHLY INDEX
Hook (up 12-5/8 to 33-1/8) and Genentech (up 10-1/2 to 44-3/4) led skyrocketing stocks on the "F-D-C" OTC Monthly Index in January. Joining a record-setting rally on the "Street," advancing stocks on the OTC Monthly Index outnumbered declining issues nearly seven to one as 34 stocks rose, five sank and two remained unchanged for the month. The rally lifted the OTC Index Composite 7.6% to its highest point since the summer of 1983. Hook's 12-point plus gain was generated by Rite-Aid's $31 a share offer for the 300-store Midwest chain on Jan. 30. The total purchase is valued at $136 mil. (see related T&G this issue). Genentech's 10 point vault in January led a broad resurgence among biotech stocks. Among the other biotech stocks jumping more than 30% in January were Immunex (up 3-1/4 to 9-1/2), Collaborative Research (up 1-1/2 to 5-5/8), Biogen (up 1-7/8 to 7-3/8), and Cetus (up 2-7/8 to 11-5/8). During the month, Genentech announced the successful completion of an R&D partnership to fund development of tumor necrosis factor. Two other groups on the OTC Index enjoying a broad run-up in January were the generic mfrs. and the drug whslrs. All four generic firms listed on the Index posted sizable gains in January as Mylan jumped 5-7/8 to 31-1/4; Zenith gained 4-1/4 to 23-3/4; Par gained 4 to 17; and LyphoMed rose 3-3/4 to 17-5/8. The Whslr. Component added over 16% in January led by FoxMeyer (up 5-1/2 to 27-3/4) and Bindley Western (up 4-7/8 to 24-3/4). Chart omitted.
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