BOSTON-- Drug stocks rallied Tuesday afternoon, but shares of Adolor Corp. fell for the second straight day following news that the Food and Drug Administration needs additional data before it can approve its drug candidate Entereg.
The Dow Jones Wilshire Pharmaceutical Index was up 0.9% at 2423.50, while the Dow Jones Wilshire Biotechnology Index advanced 1.1% at 3300.60.
Shares of Adolor were down more than 5% at $7.28, extending their losing streak from Monday. The sell-off was prompted by an FDA request a 12-month safety study be conducted on Entereg, which is used to treat bowel problems associated with the use of powerful painkillers. The agency issued an approvable letter for the drug, meaning it believes it can still be approved if certain conditions are met.
Early Tuesday, analysts at RBC Capital cut their rating of Adolor to sector perform, dropping their price target to $10 from $16 a share.
Adolor developed Entereg with U.K. drugmaker GlaxoSmithKline. Shares of Glaxo were up 1% at $54.22.
Shares of Neurocrine Biosciences Inc. were higher as well, gaining nearly 9% at $8.46 after the company was upgraded to neutral from underperform at Robert Baird on the belief that downside may be limited.
Charles River Labs shares moved up 3% to $43.88. The biotechnology company late Monday that said it swung to a loss in the latest quarter but backed its full-year 2006 forecast for both earnings and revenue.
MedImmune shares hopped 4% to $33.51. Analysts at FBR Research upgraded their rating of the stock to outperform, with a price target of $40 a share.
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