By Val Brickates Kennedy
U.S. drug stocks edged higher in early trading Thursday, with
shares of biotech groups BioMarin Pharmaceutical Inc. and Human
Genome Sciences leading the pack.
The NYSE Arca Pharmaceutical Index (DRG) was largely flat at
289.24 while the NYSE Arca Biotechnology Index (BTK) rose 0.6% to
832.59.
Shares of BioMarin (BMRN) jumped 8% to $16.85.
Late Wednesday, BioMarin reported that its third-quarter profit
rose to six cents a share, from a penny in the 2008 quarter.
Revenue increased 11% to $80.8 million.
BioMarin added that it now sees 2009 revenue coming in between
$313 million and $327 million, narrowed from its previous forecast
of $311 million to $336 million.
Analysts at Credit Suisse on Thursday raised their rating on
BioMarin to outperform from neutral.
Shares of Human Genome (HGSI) climbed 7% to $19.32. Analysts at
JP Morgan raised their rating on the stock to overweight from
neutral.
The biotech group is expected to release additional clinical
data on its lupus drug candidate Benlysta on Monday.
Mylan Laboratories (MYL) shares advanced 5% to $16.55.
Early Thursday, Mylan reported a third-quarter net loss of $40
million, or 13 cents a share, compared to profit of $182.4 million,
or 47 cents a share, for the same period a year ago.
On an adjusted basis, the Pittsburgh-based drugmaker said
third-quarter profit totaled $142.3 million, or 32 cents a share. A
survey of analysts by FactSet Research produced a consensus
forecast for a profit of 27 cents a share. The company reported
total third-quarter revenues of $1.26 billion, down from $1.66
billion.
Mylan also raised its forecast for full-year 2009 earnings to a
range of $1.24 to $1.28 a share, up from a previous range of $1.13
to $1.20 a share.
Allergan Inc. (AGN) shares rose 1% to $54.06.
The ophthalmology and dermatology products conglomerate reported
net income of $179 million, or 58 cents a share, compared with $165
million, or 54 cents a share, for the 2008 quarter. Excluding
various items, Allergan would have reported adjusted earnings per
share of 70 cents versus 65 cents. Revenue was $1.141 billion
versus $1.098 billion.
A poll of analysts by FactSet Research pegged the company at
posting earnings per share of 69 cents, on revenue of $1.08
billion. The conglomerate said it now sees 2009 adjusted earnings
coming in between $2.75 and $2.77 a share, with net product sales
of between $4.35 billion and $4.4 billion.
-Val Brickates Kennedy; 415-439-6400;
AskNewswires@dowjones.com