Healthcare Stocks: Favorable Reaction to Treasury Markets

Favorable reaction in the Treasury markets was good news for stocks as the regular session of the trading day came to a close on Thursday. Even news of the flu pandemic alert was not able to put a damper on the market action. In fact, some flu stocks jumped on the news that the World Health Organization had raised the alert level on an "imminent" pandemic yesterday afternoon.

Here is a look at some of the winners and losers in the healthcare sector for Thursday, June 11, 2009.

Chindex International Inc. (CHDX), a leading supplier of cutting-edge Western medical technologies to the Chinese healthcare system has been focused on bringing comprehensive, international standard, private healthcare services to China for the first time and profits are up. The company's stock price has been rising the past couple of session and today it said its fiscal fourth-quarter revenue rose 72% as it swung to a net profit of $3.4 million for the quarter- more than doubled its revenue. That has shares up at $14.19 +3.40 (31.51%).

Sinovac Biotech Ltd. (SVA) a leading developer and provider of vaccines in China, jumped after yesterday's flu news as it had announced days ago that it began production of a vaccine against influenza A (H1N1) virus. The virus seed was received from US CDC and was delivered to the company on June
8, 2009. China's SFDA has cleared the pandemic influenza vaccine for fast track approval, while the National Institute for the Control of Pharmaceutical and Biological Products ((NICPBP)) has committed a simultaneous lot release for H1N1 vaccine to ensure supply by early October 2009.

Vical Incorporated (VICL) said Thursday it has the necessary genetic sequence and plans to produce a prototype vaccine for the H1N1 influenza, aka Swine Flu, “within the next few days.” Wednesday, Vical announced it has entered into an agreement with the U.S. Naval Medical Research Center (NMRC), a biomedical research organization within the U.S. Navy, for the expedited development of a Swine Flu vaccine. The goal is to get the vaccine into clinical testing as quickly as possible.

Other winners include Human Genome Sciences Inc. (HGSI) ended the day up nearly 18% after a midstage trial of the company's drug BENLYSA, which treats a form of lupus showed sustained ability to reduce flare-ups caused by chronic, life-threatening autoimmune disease in combination with standard medical care. We've been telling our readers about HGSI and it looks like other investors are also starting to take notice.

Accuray Incorporated's (ARAY) is up 12.48% on anticipated good news to be presented by its president and chief executive officer, Euan S. Thomson, Ph.D., at the Jeffries Healthcare Conference in New York City. Accuray Incorporated has developed an intelligent robotic radiosurgery system, the CyberKnife system, designed to treat solid tumors anywhere in the body as an alternative to traditional surgery. Shares closed at $7.66 after rising $.85

Wednesday, Antigenics, Inc. (AGEN) went up 22% during the afternoon hours on no solid news. Some had voiced skepticism over Antigenics' recent drug data which showed that users of its kidney cancer therapy Oncophage lived considerably longer, but the stock still moved up. Yesterday it looked like the voices of those skeptics were finally heard. Stock gapped down in the morning and closed $.19 lower at $2.14 (-8.15%).

Electro-Optical Sciences, Inc. (MELA) -- This is a stock from our FDA Decisions Clendar that is very thinly traded, so movements tend to be emphasized with great speed. As our subscribers know, the FDA has granted expedited review (six months) for their MelaFind PMA (pre-market approval) so you'll see some momentum and volume build followed by price here. That is especially true since positive top line data from the MelaFind pivotal study - the largest prospective clinical study ever conducted in melanoma detection- were announced and have been circulating at several major international dermatology meetings during the last two months. It closed down $.61 at $7.13.

Biotech investors interested in seeing the complete database of clinical trials and upcoming FDA decisions can access that information here:

Thursday's Healthcare Market Movers 06/11/09

Gainers (% price change)	Last Trade	Change	Mkt Cap
Chindex Intl., Inc.	CHDX	14.19	+3.40 (31.51%)	207.38M
Sinovac Biotech Ltd.	SVA	3.95	+0.91 (29.93%)	167.57M
Vical Incorporated	VICL	2.76	+0.50 (22.12%)	111.44M
NPS Pharmaceuticals, Inc.	NPSP	4.44	+0.73 (19.68%)	210.92M
The Aristotle Corporation	ARTL	5.65	+0.92 (19.45%)	101.49M
Losers (% price change)
Antigenics, Inc.	AGEN	2.14	-0.19 (-8.15%)	155.81M
Electro-Optical Sciences	MELA	7.13	-0.61 (-7.88%)	125.77M
Angiotech Pharmaceuticals	ANPI	2.01	-0.14 (-6.53%)	171.07M
SIGA Technologies, Inc.	SIGA	7.70	-0.47 (-5.75%)	279.05M
Capital Senior Living	CSU	3.93	-0.23 (-5.53%)	105.53M
Most Actives (dollar volume)
Pfizer Inc.	PFE	14.63	+0.58 (4.13%)	98.72B
Johnson & Johnson	JNJ	56.05	+0.39 (0.70%)	154.45B
Baxter International Inc.	BAX	47.87	+1.46 (3.15%)	28.96B
Wyeth	WYE	44.58	+0.86 (1.97%)	59.45B
Merck & Co., Inc.	MRK	26.19	+0.60 (2.34%)	55.23B

Disclosure: No positions.

Comments

[PhillyDan:]

Good update article. Accuray and Mela look very interesting as longer term investments. In the short term, companies like VICL and SVA and BCRX (not mentioned) should benefit from the level 6 pandemic alert for swine flu.

Jun 12 02:11 PM