A flurry of positive and negative study data for cholesterol drugs pushed shares of Merck & Co. and Schering-Plough Corp. to record lows Monday, while Abbott Laboratories and AstraZeneca PLC shares caught a boost.
Each company's stock either reaped rewards or fell sharply after releasing study data at the American College of Cardiology conference in Chicago. Whitehouse Station, N.J.-based Merck and Kenilworth, N.J.-based Schering-Plough reported full data from a study of their combination drug Vytorin, that showed it was no more effective than Zocor, which is now a generic drug.
Vytorin is a combination of Schering-Plough's Zetia and Merck's Zocor, and the study data will likely contribute to a further sales declines for the drug. Schering-Plough shares fell to $14 during the session, the lowest point in years, while Merck shares dropped to $36.82, also a low point.
Merck also said it would halt enrollment in a late-stage study of the cholesterol drug candidate Cordaptive in the wake of the failed Vytorin study. Both studies use ultrasound imaging as a measure. That study, which involves patients with a rare condition, will continue with only about a third of the planned participants.
Meanwhile, shares of North Chicago, Ill.-based Abbott rose $2.10, or 3.4 percent, to $55.17 after the drug candidate ABT-335 met its goals of improving cholesterol levels in a late-stage study. The drug was given in combination with two commonly prescribed statins.
Goldman Sachs analyst Lawrence Keusch said Abbott's recently released cholesterol drug Simcor could benefit from the Vytorin downturn. He maintained a "Buy" rating and $64 price target.
Meanwhile, AstraZeneca ended a continuing study of the blockbuster drug Crestor after results showed the drug reduced deaths from heart disease compared with placebo. Shares of U.K.-based AstraZeneca rose $1.05, or 2.8 percent, to $37.56.
Citi analyst Kevin Wilson reaffirmed a "Hold" rating with a $46 price target and said the results could spur an increase in prescriptions for patients with elevated cholesterol.
