Thursday November 2, 11:45 am ET
WebMD Health to Pay $60 Million in Cash and Stock to Acquire Online Tools Company Subimo
WebMD Health Corp., a provider of health information services on the Internet, said Thursday it will pay $60 million to acquire Subimo LLC, which provides online tools for making health care decisions.The purchase price includes $34 million in cash to be paid on the closing date, and $26 million in WebMD Class A common stock or cash, to be paid on the second anniversary of the close of the deal. The acquisition is expected to close in December.
The company said in a statement "the acquisition will enable WebMD to better address the emerging consumer-directed health plan market."
Subimo LLC had revenue of about $4.1 million and pretax income of $790,000 for the six months ended June 30.
Shares of WebMD Health rose 41 cents Thursday to $36.57 in morning trading on the Nasdaq.
Thursday, November 02, 2006
Xoma inks deal potentially worth $100M
Xoma Ltd. and Takeda Pharmaceutical Co. said they have entered into a therapeutic monoclonal antibody discovery and development agreement worth potentially more than $100 million to Xoma before royalties.
The collaboration is intended to capitalize on Berkeley-based Xoma's (Nasdaq:XOMA - News) expertise in monoclonal antibodies.
Under the agreement announced Thursday, Takeda will make up-front and milestone payments to Xoma, fund Xoma's R&D activities including manufacturing of the antibodies for preclinical and early clinical supplies, and pay royalties to Xoma on sales of products resulting from the collaboration.
Xoma will discover therapeutic antibodies against multiple targets selected by Takeda and perform preclinical studies to support regulatory filings, cell line and process development, and production of antibodies for initial clinical trials. Takeda will be responsible for clinical trials and commercialization of drugs and is granted the right to manufacture once the product enters into mid-stage clinical trials.
The collaboration is intended to capitalize on Berkeley-based Xoma's (Nasdaq:XOMA - News) expertise in monoclonal antibodies.
Under the agreement announced Thursday, Takeda will make up-front and milestone payments to Xoma, fund Xoma's R&D activities including manufacturing of the antibodies for preclinical and early clinical supplies, and pay royalties to Xoma on sales of products resulting from the collaboration.
Xoma will discover therapeutic antibodies against multiple targets selected by Takeda and perform preclinical studies to support regulatory filings, cell line and process development, and production of antibodies for initial clinical trials. Takeda will be responsible for clinical trials and commercialization of drugs and is granted the right to manufacture once the product enters into mid-stage clinical trials.
MannKind Reports Larger 3rd-Quarter Loss on Increase in Research Expenses
VALENCIA, Calif. -- Biopharmaceutical company MannKind Corp. said Thursday its third-quarter loss nearly doubled from the year-ago period, largely driven by a jump in research and development spending.
The company reported a quarterly net loss of $61 million, or $1.23 per share, versus a loss of $31.7 million, or 73 cents per share, for the same quarter in 2005. The company recorded no revenue in either quarter.
Analysts polled by Thomson Financial had expected a loss of $1.17 per share.
Total operating expenses increased to $61.1 million from $32.9 million in the third quarter of 2005.
Research and development expenses more than doubled to $50.8 million, primarily due to the expansion of clinical trials for the company's Technosphere insulin program, MannKind said.
General and administrative expenses increased by $2 million to $10.3 million, mainly as a result of stock-compensation expenses and increased consulting costs.
The company reported a quarterly net loss of $61 million, or $1.23 per share, versus a loss of $31.7 million, or 73 cents per share, for the same quarter in 2005. The company recorded no revenue in either quarter.
Analysts polled by Thomson Financial had expected a loss of $1.17 per share.
Total operating expenses increased to $61.1 million from $32.9 million in the third quarter of 2005.
Research and development expenses more than doubled to $50.8 million, primarily due to the expansion of clinical trials for the company's Technosphere insulin program, MannKind said.
General and administrative expenses increased by $2 million to $10.3 million, mainly as a result of stock-compensation expenses and increased consulting costs.
Celgene to Issue Up to 20 Million Shares As Stock Is Added to S&P 500 Index
SUMMIT, N.J.-- Drug developer Celgene Corp. said Wednesday it plans to issue up to 20 million shares of its common stock.
The company said stock sale stems from anticipated new demand for Celgene stock once the company is added to the Standard & Poor's 500 Index, which is scheduled for the close of business on Friday.
Proceeds from the sale will be used for general corporate purposes including working capital, capital spending, investments and acquisitions, Celgene said.
Shares fell $2.48, or 4.7 percent, to $50.41 in Thursday morning trading on the Nasdaq. Celgene stock has ranged between $27.75 and $53.68 over the past year.
The company said stock sale stems from anticipated new demand for Celgene stock once the company is added to the Standard & Poor's 500 Index, which is scheduled for the close of business on Friday.
Proceeds from the sale will be used for general corporate purposes including working capital, capital spending, investments and acquisitions, Celgene said.
Shares fell $2.48, or 4.7 percent, to $50.41 in Thursday morning trading on the Nasdaq. Celgene stock has ranged between $27.75 and $53.68 over the past year.
Coffee suggested to lower risk of T2 Diabetes
Coffee drinkers have a substantially lower risk of developing type 2 diabetes than people who abstain from the beverage, a new study shows.
This "striking" protective effect was seen in former coffee drinkers as well, Besa Smith and co-investigators at the University of California San Diego in La Jolla report.
"The growing body of literature definitely suggests strongly...that there is something there," she told Reuters Health in an interview. Just what that something is isn't clear, but it's probably not caffeine, she said, because the effect has also been observed with decaffeinated coffee.
Smith and her colleagues investigated 910 men and women, all of whom were 50 or older and free of diabetes when the study began.
When the subjects were followed-up about 8 years later, the former and current coffee drinkers were about 60 percent less likely to have developed type 2 diabetes.
The protective effects were still seen after the researchers adjusted the data for variations in physical activity, weight, blood pressure, smoking and sex among the subjects.
Coffee's protective effect was seen even among people who had impaired glucose tolerance, an early warning sign of diabetes, at the beginning of the study.
The researchers were unable to determine how much coffee people needed to drink to produce the protective effect. But study participants were generally not heavy coffee drinkers, Smith said.
"Given the increasing prevalence of obesity, impaired glucose tolerance, and diabetes, and the fact that the majority of adults in most of the Westernized world drink coffee daily, a coffee benefit could have widespread impact," she and her colleagues conclude. "Further investigation is warranted."
First thing that comes to mind is the diuretic effect of caffeine. Most T2 people are overweight and have high blood pressure.
This "striking" protective effect was seen in former coffee drinkers as well, Besa Smith and co-investigators at the University of California San Diego in La Jolla report.
"The growing body of literature definitely suggests strongly...that there is something there," she told Reuters Health in an interview. Just what that something is isn't clear, but it's probably not caffeine, she said, because the effect has also been observed with decaffeinated coffee.
Smith and her colleagues investigated 910 men and women, all of whom were 50 or older and free of diabetes when the study began.
When the subjects were followed-up about 8 years later, the former and current coffee drinkers were about 60 percent less likely to have developed type 2 diabetes.
The protective effects were still seen after the researchers adjusted the data for variations in physical activity, weight, blood pressure, smoking and sex among the subjects.
Coffee's protective effect was seen even among people who had impaired glucose tolerance, an early warning sign of diabetes, at the beginning of the study.
The researchers were unable to determine how much coffee people needed to drink to produce the protective effect. But study participants were generally not heavy coffee drinkers, Smith said.
"Given the increasing prevalence of obesity, impaired glucose tolerance, and diabetes, and the fact that the majority of adults in most of the Westernized world drink coffee daily, a coffee benefit could have widespread impact," she and her colleagues conclude. "Further investigation is warranted."
First thing that comes to mind is the diuretic effect of caffeine. Most T2 people are overweight and have high blood pressure.
Wednesday, November 01, 2006
Pfizer Inc. (PFE) Shares Slip On Data
Experimental Cholesterol Drug Raises Blood Pressure
NEW YORK (AP) -- Shares of Pfizer Inc., the world's largest drugmaker, slipped Tuesday after early data on its combination cholesterol therapy showed a slight increase in patients' blood pressure even though it had a significant positive effect on cholesterol levels.
PFE closed at 26.60.
NEW YORK (AP) -- Shares of Pfizer Inc., the world's largest drugmaker, slipped Tuesday after early data on its combination cholesterol therapy showed a slight increase in patients' blood pressure even though it had a significant positive effect on cholesterol levels.
PFE closed at 26.60.
Novacea Initiates Phase 1/2 Trial of AQ4N in Glioblastoma Multiforme
SOUTH SAN FRANCISCO, CA--Nov 1, 2006 -- Novacea, Inc. (NASDAQ:NOVC) today announced that it has initiated a multicenter, Phase1b/2a open-label clinical trial of AQ4N (banoxantrone), in combination with radiotherapy and temozolomide, for safety, tolerability and activity in patients with newly diagnosed glioblastoma multiforme (GBM).
The trial consists of two parts. The primary objective of the first part will be to evaluate safety and tolerability of three dose levels (200 mg/m2, 450 mg/m2and 750 mg/m2). The second part will further evaluate safety and tolerability as well as efficacy and the highest safe and tolerated dose of the AQ4N treatment determined in part one. Novacea expects to enroll approximately 60 patients in the trial.
“Initiating this trial is an important milestone for Novacea and the GBM patient community. For more than 20 years researchers have grappled with the issue of hypoxic (oxygen starved) tumors limiting the effectiveness of radiation and/or chemotherapy. In vitro data indicate that the level of response to radiation and/or chemotherapy in hypoxic tumor cells is one-third that of normally oxygenated cells. By selectively targeting the hypoxic tumor regions, we are hopeful that AQ4N will increase the anti-tumor activity of this regimen compared to the current standard of care,” said Brad Goodwin, chief executive officer of Novacea.
Novacea acquired North American rights toAQ4N from KuDOS Pharmaceuticals and is an investigational new drug designed to address the unmet medical needs of certain cancers such as GBM. While many tumors are refractory to radiation and/or chemotherapy, AQ4N is a prodrug that is designed to be activated in regions of tumor hypoxia. Upon activation, AQ4N binds to DNA and functions as a potent topoisomerase II poison thereby blocking the replication of rapidly dividing cancer cells leading to targeted tumor cell killing. Early clinical studies in patients with brain tumors have demonstrated that AQ4N is converted into its toxic form selectively in the hypoxic region of GBM tumors and not in the adjacent normal tissues.
WHATS THE DEAL?
Hypoxia is literally the lack of oxygen in cells. Glioblastoma multiforme is a type of brain cancer.
It is known that hypoxic fractions of tumours are less responsive to radiotherapy and chemotherapy. Tumor cells that are hypoxic are less responsive to radiation and chemotherapy which can be attributed to the fact that hypoxic cells are less active than oxic cells; they are not replicating and are thus less vulnerable to cell killing through DNA damage.
Banoxantrone is preferentially and irreversibly converted to AQ4 in the body, its cytotoxic form, in hypoxic tumour cells where it remains localized. When the surrounding oxygenated cells are killed by radiotherapy or chemotherapy bringing these AQ4-containing quiescent cells closer to the oxygen source, they become reoxygenated, attempt to resume replication and, in this state, are killed by AQ4 through potent DNA intercalation and topoisomerase II inhibition which are enzymes in the DNA replication process.
(NASDAQ:NOVC) is trading down at this hour 1.3% at $6.73.
The trial consists of two parts. The primary objective of the first part will be to evaluate safety and tolerability of three dose levels (200 mg/m2, 450 mg/m2and 750 mg/m2). The second part will further evaluate safety and tolerability as well as efficacy and the highest safe and tolerated dose of the AQ4N treatment determined in part one. Novacea expects to enroll approximately 60 patients in the trial.
“Initiating this trial is an important milestone for Novacea and the GBM patient community. For more than 20 years researchers have grappled with the issue of hypoxic (oxygen starved) tumors limiting the effectiveness of radiation and/or chemotherapy. In vitro data indicate that the level of response to radiation and/or chemotherapy in hypoxic tumor cells is one-third that of normally oxygenated cells. By selectively targeting the hypoxic tumor regions, we are hopeful that AQ4N will increase the anti-tumor activity of this regimen compared to the current standard of care,” said Brad Goodwin, chief executive officer of Novacea.
Novacea acquired North American rights toAQ4N from KuDOS Pharmaceuticals and is an investigational new drug designed to address the unmet medical needs of certain cancers such as GBM. While many tumors are refractory to radiation and/or chemotherapy, AQ4N is a prodrug that is designed to be activated in regions of tumor hypoxia. Upon activation, AQ4N binds to DNA and functions as a potent topoisomerase II poison thereby blocking the replication of rapidly dividing cancer cells leading to targeted tumor cell killing. Early clinical studies in patients with brain tumors have demonstrated that AQ4N is converted into its toxic form selectively in the hypoxic region of GBM tumors and not in the adjacent normal tissues.
WHATS THE DEAL?
Hypoxia is literally the lack of oxygen in cells. Glioblastoma multiforme is a type of brain cancer.
It is known that hypoxic fractions of tumours are less responsive to radiotherapy and chemotherapy. Tumor cells that are hypoxic are less responsive to radiation and chemotherapy which can be attributed to the fact that hypoxic cells are less active than oxic cells; they are not replicating and are thus less vulnerable to cell killing through DNA damage.
Banoxantrone is preferentially and irreversibly converted to AQ4 in the body, its cytotoxic form, in hypoxic tumour cells where it remains localized. When the surrounding oxygenated cells are killed by radiotherapy or chemotherapy bringing these AQ4-containing quiescent cells closer to the oxygen source, they become reoxygenated, attempt to resume replication and, in this state, are killed by AQ4 through potent DNA intercalation and topoisomerase II inhibition which are enzymes in the DNA replication process.
(NASDAQ:NOVC) is trading down at this hour 1.3% at $6.73.
Tuesday, October 31, 2006
Nasdaq update:
On the month, the Nasdaq rose 4.8%, its best percentage gain since October 2003 when it shot up 8.2%. The S&P 500, meanwhile, climbed 3.2% in October. The broad gauge has also not put in a better October performance since 2003 when it rose 5.5%.
"It's been a very good month," said Joe Liro, equity strategist at Stone & McCarthy Research Associates. "First and foremost the decline in energy prices has taken a lot of pressure off in a number of areas. It makes the outlook of the economy more secure as it reduces the chances that we could slip into a recession while the Fed is also under less pressure to increase interest rates."
The Federal Reserve has left its key short-term interest rate unchanged at 5.25% since August after raising it seventeen times in a row in a bid to quell inflationary pressures in the economy, due in no small extent to higher energy prices.
Stock market gains, said Liro, have also been fueled by third-quarter earnings
reports that have "exceeded expectations once again."
"And finally, we've started to see a little bit more [new] money flowing into the market although nothing like the flows in previous bull markets," he said.
In Tuesday trading, investor sentiment was somewhat dented by a report showing an unexpected dip in consumer confidence as well as a manufacturing report that came in weaker than expected.
By sector, home builders, transportation stocks and pharmaceutical companies came under pressure.
"It's been a very good month," said Joe Liro, equity strategist at Stone & McCarthy Research Associates. "First and foremost the decline in energy prices has taken a lot of pressure off in a number of areas. It makes the outlook of the economy more secure as it reduces the chances that we could slip into a recession while the Fed is also under less pressure to increase interest rates."
The Federal Reserve has left its key short-term interest rate unchanged at 5.25% since August after raising it seventeen times in a row in a bid to quell inflationary pressures in the economy, due in no small extent to higher energy prices.
Stock market gains, said Liro, have also been fueled by third-quarter earnings
reports that have "exceeded expectations once again."
"And finally, we've started to see a little bit more [new] money flowing into the market although nothing like the flows in previous bull markets," he said.
In Tuesday trading, investor sentiment was somewhat dented by a report showing an unexpected dip in consumer confidence as well as a manufacturing report that came in weaker than expected.
By sector, home builders, transportation stocks and pharmaceutical companies came under pressure.
Good Read about Stem Cells
DID YOU SEE THE SIZE OF THOSE HEADLINES? "Stem Cells Used to Create Artificial Liver," the New York Times screamed on its front page. "Breakthrough! Stem Cells to One Day Create Organ for Liver Transplant," was how the Washington Post put it. "Stem Cell Breakthrough Demonstrates Viability of New Science," yelled the Los Angeles Times. "Stem Cell Hope for People with Liver Disease," agreed USA Today. The story was so big that Katie Couric narrated a special report, expressing her profound gratitude for the hope these dedicated stem-cell scientists had brought to suffering humanity.
What's that? You didn't see those headlines? You say you somehow missed the story? Well, don't blame yourself. You are not out of touch. The above headlines never appeared, the stories have not been written.
Don't get me wrong: The breakthrough described in the fictional headlines is real. British scientists have created an artificial liver--from scratch--using stem cells. The research does offer tremendous hope for the alleviation of human suffering. But you probably didn't hear about this amazing achievement because the stem cells the scientists used to build a human liver did not come from embryos: They came from umbilical cord blood.
This made their scientific achievement politically incorrect. A story that doesn't validate the stem-cell mantra that embryonic stem cells offer the "best hope" for future cures isn't worth much attention. Even the most important adult or umbilical cord blood stem-cell breakthroughs usually receive only minor, inside-the-paper coverage. This is the primary reason why so many people
still don't know about the many advances being made on a continual basis in human research with ethical, adult and umbilical cord blood stem cells.
HERE'S THE STORY: Two scientists from Newcastle University, Nico Forraz and Colin McGuckin, have built dime-sized human livers using stem cells found in umbilical cord blood. The livers are already sufficient for use in drug testing--perhaps in place of using some animals and humans as research subjects. The scientists believe that within five years, stem-cell generated liver tissue could be sufficiently perfected for use in treating human diseases caused by injury, disease, and alcohol abuse. Perhaps in 15 years, the technique could even be employed to manufacture whole human livers suitable for transplantation.
Contrast this general media's shunning of this major story with its sensationalistic reporting several weeks ago of the bogus story that scientists had obtained embryonic stem cells without destroying embryos. That story, unlike the umbilical-cord-blood-stem-cells-into-liver breakthrough, got front-page play and major television coverage. It was deemed news because it was seen as undermining President Bush's stem-cell policy.
Indeed, if this new breakthrough had been accomplished with embryonic stem cells instead of umbilical cord blood stem cells, the headlines would have been enormous. The second paragraph of the stories would have accused President Bush of holding up potentially life-saving cures. Notable scientists and bioethicists would have been touting the new dawn of regenerative medicine that was coming into being, despite Bush's resistance.
Instead, we hear the sound of silence--thanks to the news blockade that doesn't care much about stem-cell breakthroughs unless they come from destroyed embryos.
What's that? You didn't see those headlines? You say you somehow missed the story? Well, don't blame yourself. You are not out of touch. The above headlines never appeared, the stories have not been written.
Don't get me wrong: The breakthrough described in the fictional headlines is real. British scientists have created an artificial liver--from scratch--using stem cells. The research does offer tremendous hope for the alleviation of human suffering. But you probably didn't hear about this amazing achievement because the stem cells the scientists used to build a human liver did not come from embryos: They came from umbilical cord blood.
This made their scientific achievement politically incorrect. A story that doesn't validate the stem-cell mantra that embryonic stem cells offer the "best hope" for future cures isn't worth much attention. Even the most important adult or umbilical cord blood stem-cell breakthroughs usually receive only minor, inside-the-paper coverage. This is the primary reason why so many people
still don't know about the many advances being made on a continual basis in human research with ethical, adult and umbilical cord blood stem cells.
HERE'S THE STORY: Two scientists from Newcastle University, Nico Forraz and Colin McGuckin, have built dime-sized human livers using stem cells found in umbilical cord blood. The livers are already sufficient for use in drug testing--perhaps in place of using some animals and humans as research subjects. The scientists believe that within five years, stem-cell generated liver tissue could be sufficiently perfected for use in treating human diseases caused by injury, disease, and alcohol abuse. Perhaps in 15 years, the technique could even be employed to manufacture whole human livers suitable for transplantation.
Contrast this general media's shunning of this major story with its sensationalistic reporting several weeks ago of the bogus story that scientists had obtained embryonic stem cells without destroying embryos. That story, unlike the umbilical-cord-blood-stem-cells-into-liver breakthrough, got front-page play and major television coverage. It was deemed news because it was seen as undermining President Bush's stem-cell policy.
Indeed, if this new breakthrough had been accomplished with embryonic stem cells instead of umbilical cord blood stem cells, the headlines would have been enormous. The second paragraph of the stories would have accused President Bush of holding up potentially life-saving cures. Notable scientists and bioethicists would have been touting the new dawn of regenerative medicine that was coming into being, despite Bush's resistance.
Instead, we hear the sound of silence--thanks to the news blockade that doesn't care much about stem-cell breakthroughs unless they come from destroyed embryos.
Monday, October 30, 2006
General Science News: Male contraceptive gets results
Scientists are developing a male contraceptive drug which stops the development process of sperm.
Tests on rats show blocking connections to cells which "nurture" developing sperm makes the animals infertile.
The US and Italian researchers say they used relatively low doses of the molecule and found no obvious side effects, and the effect was reversible.
But they told Nature Medicine that work was now needed to see if their approach is equally effective and safe in men.
High dosage
When sperm are being made in the body in a process called spermatogenesis they sit next to other cells, called Sertoli cells, which nurse and help them grow.
If the connection between these two cell types is broken, infertility can result in men.
In the study authors used a recently developed molecule called Adjudin to dislodge the developing sperm from the Sertoli cells.
However Adjudin is also known to be toxic at high doses.
To get round this, the researchers linked it chemically to a hormone, called FSH, which acts in the testicles where sperm are made.
The FSH, which the researchers made inactive so it would merely act as a carrier and not cause any effect itself, delivered Adjudin to where it was needed, allowing much lower doses to be given.
This made the developing sperm cells "fall off" too early, before they were properly mature, resulting in complete but temporary loss of fertility in the rats.
More research is needed to assess if the same approach could work in humans.
But the researchers, led by Dr Dolores Mruk, from the Center For Biomedical Research in New York, said: "We anticipate that this compound could become a male contraceptive for human use."
Tests on rats show blocking connections to cells which "nurture" developing sperm makes the animals infertile.
The US and Italian researchers say they used relatively low doses of the molecule and found no obvious side effects, and the effect was reversible.
But they told Nature Medicine that work was now needed to see if their approach is equally effective and safe in men.
High dosage
When sperm are being made in the body in a process called spermatogenesis they sit next to other cells, called Sertoli cells, which nurse and help them grow.
If the connection between these two cell types is broken, infertility can result in men.
In the study authors used a recently developed molecule called Adjudin to dislodge the developing sperm from the Sertoli cells.
However Adjudin is also known to be toxic at high doses.
To get round this, the researchers linked it chemically to a hormone, called FSH, which acts in the testicles where sperm are made.
The FSH, which the researchers made inactive so it would merely act as a carrier and not cause any effect itself, delivered Adjudin to where it was needed, allowing much lower doses to be given.
This made the developing sperm cells "fall off" too early, before they were properly mature, resulting in complete but temporary loss of fertility in the rats.
More research is needed to assess if the same approach could work in humans.
But the researchers, led by Dr Dolores Mruk, from the Center For Biomedical Research in New York, said: "We anticipate that this compound could become a male contraceptive for human use."
Sirna soars after buyout deal afterhours!!!!
Sirna Therapeutics Inc. shares almost doubled late Monday after Merck & Co. Inc. agreed to pay $1.1 billion cash to acquire the biotechnology company, expanding its portfolio of drug development platforms.
Shares of Sirna surged $6.28 to change hands for $12.73 in after-hours trading. Merck's offer of $13 per share was a 102% premium over Sirna's closing price of $6.45.
The San Francisco-based company develops therapeutics using RNA interference, which aims to treat diseases by disrupting the expression of disease-causing genes.
"RNAi is a powerful enabler of drug discovery in cells, in animals, and in humans. We can potentially use this technology to target the activity of genes which control the activity of cancer cells, and so produce their destruction without damaging normal cells," Stephen Friend, executive vice president and franchise head of Merck's oncology and neuroscience in its research division, said in a statement.
Andrew Fire and Craig Mello were recently awarded the Nobel Prize in Medicine for their discovery of RNAi.
Merck began researching RNAi in 2001, when it bought Rosetta Inpharmatics Inc.
Sirna's lead product candidate is for the treatment of the wet-form of age related macular degeneration, the leading cause of blindness in the elderly, known as Sirna-027. It's being developed in collaboration with Allergan Inc. It has a separate alliance with GlaxoSmithKline PLC to develop compounds for the treatment of respiratory diseases.
"We had been talking with Merck about a drug development collaboration," said Jim Niedel, managing director of New Leaf Venture Partners, and out of those talks arose the acquisition talks. New Leaf manages the healthcare portfolio of The Sprout Group and holds about 25% of Sirna's shares, Niedel said.
See my post from 10-3-06 where I explain how RNAi works.
Shares of Sirna surged $6.28 to change hands for $12.73 in after-hours trading. Merck's offer of $13 per share was a 102% premium over Sirna's closing price of $6.45.
The San Francisco-based company develops therapeutics using RNA interference, which aims to treat diseases by disrupting the expression of disease-causing genes.
"RNAi is a powerful enabler of drug discovery in cells, in animals, and in humans. We can potentially use this technology to target the activity of genes which control the activity of cancer cells, and so produce their destruction without damaging normal cells," Stephen Friend, executive vice president and franchise head of Merck's oncology and neuroscience in its research division, said in a statement.
Andrew Fire and Craig Mello were recently awarded the Nobel Prize in Medicine for their discovery of RNAi.
Merck began researching RNAi in 2001, when it bought Rosetta Inpharmatics Inc.
Sirna's lead product candidate is for the treatment of the wet-form of age related macular degeneration, the leading cause of blindness in the elderly, known as Sirna-027. It's being developed in collaboration with Allergan Inc. It has a separate alliance with GlaxoSmithKline PLC to develop compounds for the treatment of respiratory diseases.
"We had been talking with Merck about a drug development collaboration," said Jim Niedel, managing director of New Leaf Venture Partners, and out of those talks arose the acquisition talks. New Leaf manages the healthcare portfolio of The Sprout Group and holds about 25% of Sirna's shares, Niedel said.
See my post from 10-3-06 where I explain how RNAi works.
Emisphere Technologies, Inc. Shares Fall On Mixed Results From Diabetes Drug
TARRYTOWN, N.Y.--Emisphere Technologies, Inc. (“Emisphere”, NASDAQ: EMIS) announced today results from its 90-day, Phase 2 study of its oral insulin product utilizing its eligen® oral delivery technology. The four-arm study evaluated the safety and efficacy of low and high fixed doses of oral insulin tablets versus placebo in patients with Type 2 Diabetes Mellitus on existing oral metformin monotherapy. The trial focused on the safety of oral insulin, specifically noting incidents of hypoglycemia, as well as the occurrence of insulin antibodies. The study met the Company’s objectives for both safety and efficacy.
The eligen technology is basically a packaging mechanism as a drug carrier:
"Drug molecules exist in many different shapes, or conformations. Some conformations can be transported across the cell membranes while others are too large or too charged to do so. The eligen technology uses the body’s natural passive transcellular transport process to enable large or highly charged molecules to cross cell membranes. Once the drug molecule crosses the membrane, the EMISPHERE delivery agent dissociates from the drug molecule, which then reestablishes its natural conformation and returns to its therapeutically active state."
EMIS closed down 24% today to $6.77- ouch.
The eligen technology is basically a packaging mechanism as a drug carrier:
"Drug molecules exist in many different shapes, or conformations. Some conformations can be transported across the cell membranes while others are too large or too charged to do so. The eligen technology uses the body’s natural passive transcellular transport process to enable large or highly charged molecules to cross cell membranes. Once the drug molecule crosses the membrane, the EMISPHERE delivery agent dissociates from the drug molecule, which then reestablishes its natural conformation and returns to its therapeutically active state."
EMIS closed down 24% today to $6.77- ouch.
Update from post on 10-25-06! The vampire bats are back from the dead:
Forest Laboratories, Inc. (FRX) And PAION Vampire Bat Drug Back From Dead; Drug Trial Resumes
--(BUSINESS WIRE)--Biopharmaceutical company PAION AG (FSE: PA8) today announced that the independent Data Monitoring Committee (DMC) for the DIAS-2 Phase III study met and informed the Steering Committee, PAION and its development partner for Desmoteplase, Forest Laboratories, Inc. (New York, USA), that it has reviewed the cumulative data from the study provided by the Companies and recommended to resume patient enrollment into DIAS-2 with no modification of the protocol. At this meeting, the DMC reviewed data from 170 randomized patients. The DIAS-2 study is evaluating PAION's drug candidate Desmoteplase in patients with acute ischaemic stroke. The Companies continue to expect that enrollment will be completed by the end of 2006 and that study results will be available by the middle of 2007.
"We are reassured by the DMC's recommendation and are looking forward to complete the study as an important milestone in the development of this potentially breakthrough stroke medication," states PAION's CEO Dr Wolfgang Soehngen. "We wish to thank our clinical investigators for their continued support in conducting the clinical trial and the positive feedback that we received during the ongoing stroke conference in Cape Town. We also appreciate the confidence of our shareholders and the analysts who cover PAION as they have provided a balanced description of the situation in PAION."
FRX is up $1.01 at this hour.
--(BUSINESS WIRE)--Biopharmaceutical company PAION AG (FSE: PA8) today announced that the independent Data Monitoring Committee (DMC) for the DIAS-2 Phase III study met and informed the Steering Committee, PAION and its development partner for Desmoteplase, Forest Laboratories, Inc. (New York, USA), that it has reviewed the cumulative data from the study provided by the Companies and recommended to resume patient enrollment into DIAS-2 with no modification of the protocol. At this meeting, the DMC reviewed data from 170 randomized patients. The DIAS-2 study is evaluating PAION's drug candidate Desmoteplase in patients with acute ischaemic stroke. The Companies continue to expect that enrollment will be completed by the end of 2006 and that study results will be available by the middle of 2007.
"We are reassured by the DMC's recommendation and are looking forward to complete the study as an important milestone in the development of this potentially breakthrough stroke medication," states PAION's CEO Dr Wolfgang Soehngen. "We wish to thank our clinical investigators for their continued support in conducting the clinical trial and the positive feedback that we received during the ongoing stroke conference in Cape Town. We also appreciate the confidence of our shareholders and the analysts who cover PAION as they have provided a balanced description of the situation in PAION."
FRX is up $1.01 at this hour.
Point Therapeutics shares rise on osteosarcoma trial data
SAN FRANCISCO-- Point Therapeutics Inc. (POTP)shares jumped 22% to $1.53 in Monday morning trade after the Boston-based biopharmaceutical company said new data in an osteosarcoma model demonstrated that mice treated with talabostat, the company's lead product candidate, had a four-fold decrease in the number of primary tumors compared to saline treatment. In a separate experiment, the company said mice treated with talabostat had a 20-fold decrease in the number of metastatic lung nodules. The studies were presented at the annual meeting of the International Society for Biological Therapy of Cancer Development in Los Angeles. In one experiment, talabostat was shown to decrease the growth of primary tumors. Mice were injected intramuscularly with a murine osteosarcoma cell line and treatment with either talabostat or saline began the following day. Mice treated with talabostat had a marked reduction in the development of primary tumors. Only two out of 10 mice treated with talabostat went on to form tumors whereas eight out 10 mice treated with saline formed tumors.
REMEMBER THAT THIS IS PRECLINICAL DATA--NOT IN HUMANS OR EVEN PHASE 1.
What is talabostat and how does it work?
Talabostat (valine-proline-boronic acid) is a potent and long-acting inhibitor of dipeptidyl peptidases, or matrix metalloproteases, MMP's. MMPs have been under intense research for cancer targets for many years.
So what are dipeptidyl peptidases? They are enzymes that cut proteins on the extracellular matrix and proteins that surround tumors that are solid. Here is a good example of a compound being tested, it worked, they ran with it and they really do not know the exact mechanism of action other than the basic pharmacokinetics.
POTP is up 16% today to $1.45 in heavy trading.
REMEMBER THAT THIS IS PRECLINICAL DATA--NOT IN HUMANS OR EVEN PHASE 1.
What is talabostat and how does it work?
Talabostat (valine-proline-boronic acid) is a potent and long-acting inhibitor of dipeptidyl peptidases, or matrix metalloproteases, MMP's. MMPs have been under intense research for cancer targets for many years.
So what are dipeptidyl peptidases? They are enzymes that cut proteins on the extracellular matrix and proteins that surround tumors that are solid. Here is a good example of a compound being tested, it worked, they ran with it and they really do not know the exact mechanism of action other than the basic pharmacokinetics.
POTP is up 16% today to $1.45 in heavy trading.
Asian stocks were mixed to lower Monday
Asian stocks were mixed to lower Monday, with Japan's Nikkei 225 Index losing ground after weak quarterly U.S. GDP data weighed on exporters such as Toyota Motor and Honda Motor while NTT Docomo Inc. fell back after posting disappointing half-year profit figures.
U.S. stock indexes ended weaker Friday after the government reported the economy grew at a slower-than-expected annual rate of 1.6% in the third quarter, below economists' expectations of 2%.
Japan's Nikkei 225 Index fell 1.6% in early-afternoon trading to 16,407.18.
Data released ahead of trading showed Japanese industrial production fell 0.7% while inventories rose slightly in September from a month earlier, according to the Nikkei daily, citing figures from the Ministry of Economy, Trade and Industry.
Elsewhere around Asia, Australia's S&P/ASX 200 was up 0.6% and South Korea's Kospi was down 0.9%. Taiwan's Weighted Price Index was down 1%. Markets in Hong Kong were closed for a public holiday.
"Although the yen looks inexpensive based on the current account surplus to GDP and interest rates in Japan are on the rise, investors have continued to borrow in yen and invest in higher nominal interest rates overseas," Sean Darby, regional Asia economist with Nomura, wrote in a note to clients. "The heavy borrowing in yen has driven risk appetite to insatiable levels, while pushing the vulnerability of equity markets towards a sharp correction as positions are closed at year-end."
U.S. stock indexes ended weaker Friday after the government reported the economy grew at a slower-than-expected annual rate of 1.6% in the third quarter, below economists' expectations of 2%.
Japan's Nikkei 225 Index fell 1.6% in early-afternoon trading to 16,407.18.
Data released ahead of trading showed Japanese industrial production fell 0.7% while inventories rose slightly in September from a month earlier, according to the Nikkei daily, citing figures from the Ministry of Economy, Trade and Industry.
Elsewhere around Asia, Australia's S&P/ASX 200 was up 0.6% and South Korea's Kospi was down 0.9%. Taiwan's Weighted Price Index was down 1%. Markets in Hong Kong were closed for a public holiday.
"Although the yen looks inexpensive based on the current account surplus to GDP and interest rates in Japan are on the rise, investors have continued to borrow in yen and invest in higher nominal interest rates overseas," Sean Darby, regional Asia economist with Nomura, wrote in a note to clients. "The heavy borrowing in yen has driven risk appetite to insatiable levels, while pushing the vulnerability of equity markets towards a sharp correction as positions are closed at year-end."
Sunday, October 29, 2006
Market outlook mixed for next week; Economy slows
As an extremely strong month draws to a close, stock investors are in a bit of a pickle.
On one hand, there are many reasons to keep the rally going. On the other hand, the rally's been going so long, it might be time to step back.
Strong earnings, low oil prices and the likelihood that the Federal Reserve is done raising rates for now should all keep equities buoyant. But countering that is the reality of the slowing economy and the threat that it poses to corporate earnings.
"The economy is slowing and it will begin to undermine earnings," said Ned Riley, chief investment strategist at Riley Asset Management. "But the market may have already accounted for that and seems to be focused on other things."
25 Rules to Grow Rich By
Riley said that in the short term, stocks should be able to keep pushing higher, particularly if this week's economic and earnings news proves supportive. (See charts for details).
"We're still in the earnings period, and that will continue to be the main driver in the short term," said Brett Gallagher, head of equities at Julius Baer. "We've had strong results and the market has reacted well, as expected."
However, "technically, we're overdone," Gallagher said, referring to the fact that on a technical market level, stocks are probably due for a retreat - and one that's bigger than Friday's selloff. This tug of war between the strong fundamentals and the likelihood of a pullback could keep markets choppy in the near future, he added.
That was certainly the case last week, where stocks rallied for four days straight, only to do an about-face Friday, after a report showed economic growth in the third quarter slowed far more than expected, due largely to the slowing housing market.
While the selloff no doubt unsettled some investors, it certainly wasn't surprising.
On one hand, there are many reasons to keep the rally going. On the other hand, the rally's been going so long, it might be time to step back.
Strong earnings, low oil prices and the likelihood that the Federal Reserve is done raising rates for now should all keep equities buoyant. But countering that is the reality of the slowing economy and the threat that it poses to corporate earnings.
"The economy is slowing and it will begin to undermine earnings," said Ned Riley, chief investment strategist at Riley Asset Management. "But the market may have already accounted for that and seems to be focused on other things."
25 Rules to Grow Rich By
Riley said that in the short term, stocks should be able to keep pushing higher, particularly if this week's economic and earnings news proves supportive. (See charts for details).
"We're still in the earnings period, and that will continue to be the main driver in the short term," said Brett Gallagher, head of equities at Julius Baer. "We've had strong results and the market has reacted well, as expected."
However, "technically, we're overdone," Gallagher said, referring to the fact that on a technical market level, stocks are probably due for a retreat - and one that's bigger than Friday's selloff. This tug of war between the strong fundamentals and the likelihood of a pullback could keep markets choppy in the near future, he added.
That was certainly the case last week, where stocks rallied for four days straight, only to do an about-face Friday, after a report showed economic growth in the third quarter slowed far more than expected, due largely to the slowing housing market.
While the selloff no doubt unsettled some investors, it certainly wasn't surprising.
Saturday, October 28, 2006
Man , another HCV polymerase inhibitor!
Pharmasset announced today that a "Late Breaker" presentation describing the results of Study 303, a 48 week follow-on study to the Korean Phase 3 drug registration trial of Clevudine for the treatment of Hepatitis B, will be presented at the 57th Annual Meeting of the American Association for the Study of Liver Diseases (AASLD) being held in Boston, Massachusetts from October 27-31, 2006. The Clevudine abstract can be viewed on the AASLD website at http://www.aasld.org.
Clevudine is a nucleoside analogue that has shown potent anti-HBV activity in both in vitro and late-stage clinical studies in over 600 HBV-infected patients. The poster presentation at AASLD will describe the results of a study conducted by Bukwang Pharmaceuticals. In this study, Clevudine demonstrated potent antiviral activity in e-antigen positive (HBeAg+) and e-antigen negative (HBeAg-) patient populations, along with a marked 12-week post-treatment antiviral effect or sustained virological response (SVR) in both patient populations. Clevudine was generally well tolerated throughout the course of this study. Clevudine received conditional drug approval from the Korean Food & Drug Administration in July 2006, and the product launch in Korea is anticipated by the end of 2006.
"In this study, 31% of HBeAg+ patients and 92% of HBeAg -- patients have undetectable HBV 12 weeks after the end of treatment," stated Schaefer Price, Pharmasset's President & CEO. "The duration of Clevudine's post-treatment effect is unique. To our knowledge, Clevudine is the only HBV therapeutic agent, investigational or approved, that has demonstrated potentially clinically meaningful SVR levels at 12 weeks and 24 weeks post-treatment. We look forward to initiating our U.S. and European registration studies of Clevudine in 2007."
Clevudine acts directly on the HBV-polymerase to reduce its ability to incorporate nucleosides into new viral DNA chains. In preclinical animal models, Clevudine also demonstrated the ability to significantly reduce covalently closed circular DNA, or cccDNA, the form of HBV that is believed to be responsible for the persistence of an HBV infection.
Clevudine is a nucleoside analogue that has shown potent anti-HBV activity in both in vitro and late-stage clinical studies in over 600 HBV-infected patients. The poster presentation at AASLD will describe the results of a study conducted by Bukwang Pharmaceuticals. In this study, Clevudine demonstrated potent antiviral activity in e-antigen positive (HBeAg+) and e-antigen negative (HBeAg-) patient populations, along with a marked 12-week post-treatment antiviral effect or sustained virological response (SVR) in both patient populations. Clevudine was generally well tolerated throughout the course of this study. Clevudine received conditional drug approval from the Korean Food & Drug Administration in July 2006, and the product launch in Korea is anticipated by the end of 2006.
"In this study, 31% of HBeAg+ patients and 92% of HBeAg -- patients have undetectable HBV 12 weeks after the end of treatment," stated Schaefer Price, Pharmasset's President & CEO. "The duration of Clevudine's post-treatment effect is unique. To our knowledge, Clevudine is the only HBV therapeutic agent, investigational or approved, that has demonstrated potentially clinically meaningful SVR levels at 12 weeks and 24 weeks post-treatment. We look forward to initiating our U.S. and European registration studies of Clevudine in 2007."
Clevudine acts directly on the HBV-polymerase to reduce its ability to incorporate nucleosides into new viral DNA chains. In preclinical animal models, Clevudine also demonstrated the ability to significantly reduce covalently closed circular DNA, or cccDNA, the form of HBV that is believed to be responsible for the persistence of an HBV infection.
Stocks seen higher but data may bring in cool front
Employment report for October due Friday; earnings growth rate rises to 17%
U.S. stocks are expected to edge higher next week as investors struggle to decide whether to take their cues from strong corporate earnings or signs that economic growth is moderating.
Some analysts said the strength of earnings - nearly three-quarters of major
companies have reported higher-than-expected profit for the third quarter -- should provide support for the market next week. Others said the recent rally has left the major indexes vulnerable and that any weakness in the raft of economic reports due could send stocks lower or keep them range-bound.
"The market is projecting at least no Fed [action], modest economic growth and diminishing inflation numbers. Any economic report that deviates significantly from that is going to shake up the market," said Paul Nolte, director of investments at Hinsdale Associates.
Investors will have to parse data including October payrolls, snapshots of September's inflation, manufacturing and construction reports as well as monthly retail sales data from chain stores.
But the economic data won't completely steal the spotlight from the strength that corporate earnings have shown so far this season and from the pile of results still to be released, analysts said.
"In the third week of earnings season, we're still coming out with more positive surprises...and usually those taper off by this time," said Marc Pado, U.S. market strategist at Cantor Fitzgerald.
Major results on deck next week include Verizon Communications, Procter & Gamble, Humana Inc., Time Warner Inc., and Clear Channel Communications, which said earlier this week that it's considering strategic alternatives.
As of Friday, have reported results, with 94 reports scheduled for next week.
So far, according to Thomson Financial, 74% of companies have beat earnings estimates, 11% have matched, and 15% have fallen short of expectations.
The blended growth rate, which combines reported and estimated figures, is now up to 17.4% from 15.3% at the beginning of the quarter. That's the highest growth rate since the fourth quarter of 2004.
"Those are very strong numbers versus expectations," said John Butters, senior research analyst at Thomson Financial, since typically 60% of companies at this point in an earnings season post results above expectations, 20% match, and 20% come in below.
Companies are also beating estimates by 6.4%, above the long-term average of 3.2%.
U.S. stocks are expected to edge higher next week as investors struggle to decide whether to take their cues from strong corporate earnings or signs that economic growth is moderating.
Some analysts said the strength of earnings - nearly three-quarters of major
companies have reported higher-than-expected profit for the third quarter -- should provide support for the market next week. Others said the recent rally has left the major indexes vulnerable and that any weakness in the raft of economic reports due could send stocks lower or keep them range-bound.
"The market is projecting at least no Fed [action], modest economic growth and diminishing inflation numbers. Any economic report that deviates significantly from that is going to shake up the market," said Paul Nolte, director of investments at Hinsdale Associates.
Investors will have to parse data including October payrolls, snapshots of September's inflation, manufacturing and construction reports as well as monthly retail sales data from chain stores.
But the economic data won't completely steal the spotlight from the strength that corporate earnings have shown so far this season and from the pile of results still to be released, analysts said.
"In the third week of earnings season, we're still coming out with more positive surprises...and usually those taper off by this time," said Marc Pado, U.S. market strategist at Cantor Fitzgerald.
Major results on deck next week include Verizon Communications, Procter & Gamble, Humana Inc., Time Warner Inc., and Clear Channel Communications, which said earlier this week that it's considering strategic alternatives.
As of Friday, have reported results, with 94 reports scheduled for next week.
So far, according to Thomson Financial, 74% of companies have beat earnings estimates, 11% have matched, and 15% have fallen short of expectations.
The blended growth rate, which combines reported and estimated figures, is now up to 17.4% from 15.3% at the beginning of the quarter. That's the highest growth rate since the fourth quarter of 2004.
"Those are very strong numbers versus expectations," said John Butters, senior research analyst at Thomson Financial, since typically 60% of companies at this point in an earnings season post results above expectations, 20% match, and 20% come in below.
Companies are also beating estimates by 6.4%, above the long-term average of 3.2%.
Friday, October 27, 2006
More bad news for Aspreva: MMF fails to meet Phase III endpoints
Aspreva Pharmaceuticals Announces Preliminary Results of Phase III Trial of CellCept for Myasthenia Gravis
Aspreva Pharmaceuticals Corporation today announced that based on a preliminary review of the data, CellCept® (mycophenolate mofetil or MMF) in treating myasthenia gravis (MG) failed to meet both primary and secondary endpoints in its phase III trial.
The randomized, double-blind, placebo-controlled clinical trial was designed to evaluate the efficacy and safety of MMF in maintaining or improving symptom control with reduced doses of corticosteroids in patients with myasthenia gravis over a treatment period of 36 weeks. The primary endpoints in the trial included minimal disease activity while maintaining a designated low steroid and cholinesterase inhibitor doses.
The preliminary analysis of the results from Aspreva's phase III trial indicates that MMF failed to meet both the primary and secondary endpoints. Aspreva's analysis also showed that MMF appeared to be generally well tolerated by the patients in the study. The most frequent adverse events were diarrhea, muscle spasms and other symptoms related to the disease.
As previously announced, Aspreva will hold a conference call and webcast beginning at 5:00 pm Eastern Time (2:00 p.m. Pacific Time) on Wednesday, November 1st, and will use this opportunity to discuss these results and to release its full financial and business results for the third quarter 2006.
Myasthenia gravis is a disease of the immune system attacking the own body. Antibodies to the acetylcholine receptor (a transmitter of cell signals) at the neuromuscular junction block the transmission of nerve impulses that normally acetylcholine would provide. This causes a progressive weakness to the patient.
MMF is an immunosupressive drug that prevents T and B lymphocytes from being able to proliferate and grow and stops antibody production from B cells.
(NASDAQ: ASPV; TSX: ASV)closed todays trading down 14% to $18.99.
Aspreva Pharmaceuticals Corporation today announced that based on a preliminary review of the data, CellCept® (mycophenolate mofetil or MMF) in treating myasthenia gravis (MG) failed to meet both primary and secondary endpoints in its phase III trial.
The randomized, double-blind, placebo-controlled clinical trial was designed to evaluate the efficacy and safety of MMF in maintaining or improving symptom control with reduced doses of corticosteroids in patients with myasthenia gravis over a treatment period of 36 weeks. The primary endpoints in the trial included minimal disease activity while maintaining a designated low steroid and cholinesterase inhibitor doses.
The preliminary analysis of the results from Aspreva's phase III trial indicates that MMF failed to meet both the primary and secondary endpoints. Aspreva's analysis also showed that MMF appeared to be generally well tolerated by the patients in the study. The most frequent adverse events were diarrhea, muscle spasms and other symptoms related to the disease.
As previously announced, Aspreva will hold a conference call and webcast beginning at 5:00 pm Eastern Time (2:00 p.m. Pacific Time) on Wednesday, November 1st, and will use this opportunity to discuss these results and to release its full financial and business results for the third quarter 2006.
Myasthenia gravis is a disease of the immune system attacking the own body. Antibodies to the acetylcholine receptor (a transmitter of cell signals) at the neuromuscular junction block the transmission of nerve impulses that normally acetylcholine would provide. This causes a progressive weakness to the patient.
MMF is an immunosupressive drug that prevents T and B lymphocytes from being able to proliferate and grow and stops antibody production from B cells.
(NASDAQ: ASPV; TSX: ASV)closed todays trading down 14% to $18.99.
Dow Ends Down 73 on Slow Economic Growth; BioTech down 0.5% as well
NEW YORK (AP) -- Stocks pulled back Friday after the Commerce Department reported that the economy grew at the slowest pace in more than three years and stirred concern that a desired soft landing in the economy might prove elusive.
Investors have bid up stocks sharply in October on the notion that the economy is slowing, but not in a way that would threaten corporate profits and consumer spending. Investors are also counting on a gradual slowdown to reduce the threat of inflation and convince the Federal Reserve to lower short-term interest rates.
While investors expected Friday's advance reading on gross domestic product would show slowing growth, the report underscored concern that a cooling housing market could spill over into other parts of the economy.
"I think that the market actually was poised for profit-taking and consolidation," said Quincy Krosby, chief investment strategist at The Hartford. She contends the GDP report gave investors an excuse to catch their breath after the recent run-up and called the pullback a healthy pause.
Dow Ends Down 73, Nasdaq Drops 28 After GDP Report Shows Slowest Growth in More Than 3 Years
Investors have bid up stocks sharply in October on the notion that the economy is slowing, but not in a way that would threaten corporate profits and consumer spending. Investors are also counting on a gradual slowdown to reduce the threat of inflation and convince the Federal Reserve to lower short-term interest rates.
While investors expected Friday's advance reading on gross domestic product would show slowing growth, the report underscored concern that a cooling housing market could spill over into other parts of the economy.
"I think that the market actually was poised for profit-taking and consolidation," said Quincy Krosby, chief investment strategist at The Hartford. She contends the GDP report gave investors an excuse to catch their breath after the recent run-up and called the pullback a healthy pause.
Dow Ends Down 73, Nasdaq Drops 28 After GDP Report Shows Slowest Growth in More Than 3 Years
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