BIOTECH STOCKS: 2007 WINNERS AND LOSERS

 

New York, NY based Imclone (NASDAQ:IMCL) spiked 65% in 2007 on the promise of its only drug, Erbitux, which showed survival improvement in colon cancer patients when used as initial treatment, while rival drug Vectibix from Amgen, failed in a similar study. Earlier this year, raider Carl Icahn has raised its stake in Imclone and Johnson&Johnson veteran John Johnson joined as CEO.

As reported by Forbes,  the Biotech sector overall underperformed broader market indices in 2007. The NASDAQ Stock Market Biotech Index rose 5.6% while the NASDAQ composite was up 10.7% and the Dow Jones 7.2.

Along with Imclone, the big Biotech winners are Invitrogen (NASDAQ:IVGN), Gilead (NASDAQ:GILD), Millenium (NASDAQ:MLNM) and OSI (NASDAQ:OSIP). Invitrogen, based in Carlsbad, CA, is a leading supplier of Research products, including Kits for Gene Cloning. It stock went up 63% in 2007. Foster City, CA based Gilead Sciences, went up 43% on the strength of its HIV drug portfolio. Melville, NY based OSI Pharmaceuticals, went up 39% on growth of its Oncology division while still awaiting divestiture of its Ophtalmology business. Cambridge, MA based, Millenium Pharmaceuticals, rose 38% on favorable clinical results for its oncology drug Velcade.

The big Biotech losers are Amgen, Genentech, Nektar and Vertex. Thousand Oaks, CA based Amgen (NASDAQ:AMGN) went down 31% on weak sales of its flagship drug Aranesp, which experienced label restrictions from the FDA and tighter reimbursement guidelines. South San Francisco, CA based Genentech (NYSE:DNA) fell 17% after the FDA did not approve Avastin for Breast Cancer. San Carlos, CA based Nektar Therapeutics (NASDAQ:NKTR) fell 56% after Pfizer discontinued its partnership recognizing the marketing failure of  inhaled insulin drug Exubera. Cambridge, MA based Vertex Pharmaceuticals (NASDAQ:VRTX) fell 37% in 2007 as confidence in its current and future product porfolio eroded.