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Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:

Neurochem by Bill Alpert

Summary: Hopes for Alzhemed, the Alzheimer-related memory loss drug, dimmed last week on Neurochem's (NRMX) announcement that the statistical model for the drug's trials will be readjusted. Analysts like CIBC World Markets's Brian Lian said this indicated that the drug had no significant statistical effect in trials. Shares slid 11% to $11.86, already down from $22 in January, as analysts cut their price targets. Neurochem also implied further uncertainty ahead, citing other medications and study population characteristics as possibly impacting the final results due in June. But Barron's reports that the drug is the most advanced in the testing stages of all other new generation Alzheimer's drugs. Myriad Genetics (NASDAQ:MYGN), Elan (NYSE:ELN), Eli Lilly (NYSE:LLY) and Wyeth (WYE) are all testing Alzheimer drugs. Despite Barron's bearish April 16th piece on Cepheid (NASDAQ:CPHD), the medical testing firm received expected FDA approval this week of its quick hospital staph infection tests. The stock rallied, then settled at $12.09. It's now up to Cepheid to realize company predictions of phenomenal sales and profitability by Q4'07.

Related Links: Cepheid's Buyout Attractions are Overrated - Barron'sNeurochem Dives As FDA Delays Decision On Kidney DrugNeurochem Play: Up or Down or Either Way

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Source: Neurochem Announcement Lowers Alzhemed Expectations - Barron's