The biotech space had several winners today, and in this segment from Wednesday's Market Checkup, Motley Fool health care analyst David Williamson takes a look at which stocks popped in this space today, and what drove them through the roof.
First up is Chelsea Therapeutics (NASDAQ: CHTP), up a massive 20% on news that its drug Northera was finally approved. Despite the advisory committee's overwhelming support, the market was unsure if this would gain approval, but after delaying its decision from Friday until Tuesday, the FDA gave the thumbs-up.
Next is Furiex (NASDAQ: FURX), which had seen shares skyrocket 130% on the news that its IBS drug had passed its phase 3 trial with flying colors, and has now announced that it is looking for a buyer. The market showed initial enthusiasm on the news that Furiex was for sale, but that sentiment has now cooled slightly, possibly on the realization that finding a buyer may be easier said than done, as the company's drug isn't without its safety issues.
And finally, Eli Lilly (NYSE:LLY) got the win it needed with its critical drug candidate ramucirumab, which showed strong results in a phase 3 trial as a second line non-small cell lung cancer treatment. The market reacted positively with shares climbing about 5%, as the drug achieved statistical significance both in progression-free survival and overall survival rates.
In the video, David tells investors what to expect from these drugs from here, and what he'll be watching for from these companies down the road.