Here are some of the top stories today that affecting key drug and biotech stocks:
GlaxoSmithKline (NYSE: GSK) reorganized its corporate structure, increasing focus on emerging markets such as China, Russia, Brazil, India and the Middle East. New CEO Andrew Witty, who will take over on May 22, approves the moves. Shares are down $0.25 to $44.64 in mid-day trading. The 52-week range is $40.51 to $58.23.
Merck (NYSE: MRK) down slightly despite news Monday that they are to cut 1,200 sales jobs to cut costs. Yesterday, shares dropped $0.47. Shares are down $0.13 to $38.85 in mid-day trading on thin volume. The 52-week range is $36.80 to $61.62.
Obagi Medical Products, Inc. (NASDAQ: OMPI) dropping over 20% today after earnings reported Monday missed Street estimates. The skin care products maker showed a profit of $3 million for EPS of $0.13. Thomson analysts estimated $0.18 EPS. The company also reduced its yearly outlook. Shares are down $1.81 to $6.98, grazing new lows. The 52-week range is $6.80 to $25.60.
StemCells Inc. (NASDAQ: STEM) sinking after first quarter earnings were reported this morning. They showed a net loss of $6.5 million or -$0.08 EPS, wider that -$0.06 EPS in 2007. Shares are down over 5% to $1.58. The 52-week range is $1.00 to $2.69.
Teva Pharmaceuticals (NASDAQ: TEVA) reported solid first quarter earnings that beat estimates. Excluding a large charge for the $382 million acquisition of CoGenesys, Teva showed a net income of $529 million or $0.64 EPS, beating estimates of $0.63 EPS. Shares are down marginally to $46.49. The 52-week range is $38.13 to $50.00.
Vanda Pharmaceuticals, Inc. (NASDAQ: VNDA) shares are dropping today after rising almost 40% yesterday after reporting narrower first quarter losses last Thursday, beating expectations. Also yesterday, Caris initiated coverage on the company with a “Buy” rating and a $22.00 price target, specifically citing the expectation that schizophrenia treatment Fanapta, will gain regulatory approval in July. Today, shares are down over 6% to $5.10 on unusually high trading volume. The 52-week range is $2.70 to $22.49.
May 6, 2008