|Healthcare Review: Sucampo Pharmaceuticals, ACADIA Pharmaceuticals, Volcano, ZIOPHARM Oncology, Eli Lilly & Co Are Notable Movers|
|By Mary Davila|
|Wednesday, 12 December 2012 14:35|
The Federal Reserve said it would buy $45 billion a month in long-term Treasurys, extending a program intended to keep interest rates low and encourage borrowing and investment. The U.S. central bank also said it would maintain its "exceptionally low" interest rates as long as the unemployment rate remained above 6.5 percent.
Following are the notable movers at mid day on Wednesday:
Sucampo Pharmaceuticals, Inc.(NASDAQ:SCMP) jumped over 4% after earlier announcing its supplemental new drug application for Rescula, a treatment for lowering intraocular pressure in patients with open-angle glaucoma or ocular hypertension, has been approved by the FDA. According to the labeling, the treatment may be used as a first-line agent or in tandem with other topical ophthalmic drugs.
ACADIA Pharmaceuticals Inc.(NASDAQ:ACAD) soared 13% after announcing an $86.4M private placement. The securities are to be sold at $4.43 per share, and will be used primarily to support completion of it's Phase III pimavanserin program, including a planned confirmatory Phase III pivotal trial in Parkinson's disease psychosis.
Eli Lilly & Co.(NYSE:LLY) shares slumped 2.60% after saying it will carry out another Phase III trial of its solanezumab treatment in patients with mild symptoms of Alzheimer's disease, and will delay applying for approval in the U.S. and Europe following meetings with regulators. The postponement is unlikely to surprise SA author Brian Wilson, who pointed out that apparent patient improvement in two previous studies was "not statistically significant."
Volcano Corporation(NASDAQ:VOLC) slips 1% today after Credit Suisse downgraded the shares to Neutral and cut its price target from $32.00 to $27.00 . The firm says there's little clarity on its upcoming M&A issues, and VOLC will have to execute solidly in order to create shareholder value. There's potential for further dilution if funds are spent on earlier stage/limited revenue assets.
ZIOPHARM Oncology Inc.(NASDAQ:ZIOP) plunged 6% on a downgrade to Hold at Jefferies morning. The firm also cut its price target on the stock to $4 from $7 a share, citing increased clinical risks after the firm met with oncology experts to discuss ZIOP's palifosfamide. The discussions indicate a sub-50% probability the drug will meet its OS endpoint, which is necessary for FDA approval.