Drug stocks mixed, Vertex slides on widened loss

BOSTON -- Drug stocks closed mixed Wednesday while shares of Vertex Pharmaceuticals slid in the wake of a weakened first-quarter earnings report.
The Amex Pharmaceutical Index edged up 0.4% to close at 325.47 and the Amex Biotechnology Index fell 1.8% to 666.50.

Biotech index component Vertex skidded 7% to $34.82. After market close Tuesday, the anti-viral drug developer reported a quarterly net loss of $50.1 million, or 47 cents a share. This compared to a net loss of $44.7 million, or 56 cents a share, last year.

For the first quarter, Biogen posted earnings of $123 million, or 36 cents a share. The Cambridge, Mass.-based company netted $43 million, or 12 cents a share, in last year's corresponding period. Revenue climbed 4% to $611 million, from $588 million last year, but still fell short of Wall Street expectations. See full story.
Discovery Laboratories was on the rebound, after sinking over 50% on Tuesday on news that manufacturing problems were delaying approval of its pediatric respiratory treatment Surfaxin.
Shares of Discovery shot up 17% to close at $2.58.

Also climbing was German drugmaker Bayer AG. The FDA awarded its drug candidate Nexavar orphan drug status in the treatment of liver cancer, meaning that if it receives approval, it will enjoy seven years of market exclusivity for that condition. Nexavar is already approved in the U.S. for the treatment of kidney cancer.
Gilead Sciences tumbled 7% to close at $57.31. The HIV drug developer announced on Tuesday that it had closed on a $1.3 billion sale of convertible senior notes.