UPJOHN, MERCK, SYNTEX LEAD PHARMACEUTICALS, COMPOSITE TO 1985 HIGHS
Executive Summary
An extremely strong Pharmaceutical Component paced by Upjohn (up 4-5/8 to 133-3/8), Merck (up 3-5/8 to 125-7/8) and Syntex (up 3-1/8 to 76) helped left the "F-D-C" Composite Index 1.9% to new heights for the week ended Nov. 22. The overall performance of drug company issues reflected the generally bullish outlook on the "Street" during a week in which the Dow Jones average posted a 29-point gain and reached a record high, 1464.33, up 2.1%. Pharmaceuticals established a yearly high for the fourth consecutive week, with advancing issues outnumbering declines almost seven to one. Alza (up 2-3/8 to 31-1/4) moved on the news that the company plans to purchase and retire up to 50% of 2.9 mil. shares of nonvoting common stock now owned by Ciba-Geigy. Alza said it plans to use the proceeds from a 3 mil. share public offering of new common stock to fund the repurchase. SmithKline (up 2-1/2 to 74-1/8) showed renewed vigor the last two weeks, and surpassed the highwater mark it reached in mid-July. Drug issues that have participated in the strong market rally over the last four weeks include Lilly, up almost eight points since mid-October to 99-1/4; Merck, which is up over 10 points; and Marion, up eight to 44-1/4. Diversified stocks established a 1985 high for the third straight week. Among the major point-plus gainers were Bristol-Myers (up 2-1/8 to 63-1/2), Sterling (up 4-1/8 to 39-1/8) and Thompson Medical (up 2-5/8 to 14-3/4). Wholesaler stocks were mixed McKesson (up 1-3/8 to 51-5/8) and Foxmeyer (up 1-3/8 to 25-1/4) advancing, while Bergen Brunswig fell 7/8 to 29-3/8. Among the Chains, retreating issues outnumbered gainers four to three with Longs (up 2-1/8 to 29-5/8) the only stock moving more than a point. Eckerd, Fay's and Perry all showed no change for the week. Chart omitted.
You may also be interested in...
Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data
Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011
FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance
FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials
Shire Hopes To Sow Future Deals With $50M Venture Fund
Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth