BioHealth Business Daily (CTIC, DNDN, HGSI, MNKD, NVAX, RGEN, SQNM, VVUS)

Today is a strange day in biotech. We have big moves in many key names, but this is not the normal news flow in the ten top market movers in our BioHealth universe.  Still, we are seeing standout moves in shares of Cell Therapeutics, Inc. (NASDAQ: CTIC), Dendreon Corporation (NASDAQ: DNDN), Human Genome Sciences, Inc. (NASDAQ: HGSI), MannKind Corporation (NASDAQ: MNKD), Novavax Inc. (NASDAQ: NVAX), Repligen Corp. (NASDAQ: RGEN), Sequenom, Inc. (NASDAQ: SQNM), and VIVUS, Inc. (NASDAQ: VVUS).  We have provided a summary of the news or logic behind the moves and added in color and/or historical data where appropriate.

Cell Therapeutics, Inc. (NASDAQ: CTIC) is trading sharply lower after it agreed to sell $21 million in preferred stock and in warrants.  Due to the terms and added dilution, shares are down almost 23% at $0.347 on already double normal volume of almost 40 million shares.

Dendreon Corporation (NASDAQ: DNDN) is trading up ahead of its ASCO presentation of data from integrated analysis of three Phase 3 PROVENGE clinical trials of an autologous cellular immunotherapy in advanced prostate cancer.  Shares are trading up 7% at $44.62 on 3.6 million shares, although this may be an oversold bounce more than anticipation of new blockbuster data expected.

Human Genome Sciences, Inc. (NASDAQ: HGSI) was one of several company stocks called by Benrnstein as “trading below bargain basement prices” in a research note.  Shares were trading up 5% at $24.05 on what feels like normal trading volume of 2.5 million shares in mid-day trading.

MannKind Corporation (NASDAQ: MNKD) may also be more of an oversold bounce more than raw news despite the notion that its 4.4% gain makes it one of the top ten gainers today.  This is one of the more speculative names in the BioHealth realm now and shares had slid from over $6.00 to under $5.00 in the last few trading sessions.  The 4.4% gain puts shares at $5.17, and it is worth noting that volume does not stand out as unusual.

Novavax Inc. (NASDAQ: NVAX) has a surprise gain after it named a new new head of development and chief medical officer.  Mark Thornton, a former FDA officer is filling the position, and he has been a medical officer in the U.S. Navy and the FDA’s immunology and infectious diseases sections. Thornton has also served in positions in ZioPharm Oncology Inc., Angiotech Pharmaceuticals Inc., and at GenVec Inc.  Shares are trading up 6% at $2.45 on thin volume of only about 400,000 shares.

Repligen Corp. (NASDAQ: RGEN) is up after the FDA granted the potential genetic disorder treatment RG2833 an orphan drug status.  RG2833 is aimed at treating Friedreich’s ataxia, a disorder with nerve degeneration controlling muscle movements in the arms, legs, and also with the spinal cord’s nerve tissue.  Shares had more of a “gap and crap” move this morning.  After the news, the stock went almost immediately up to as high as $3.70 but shares are now back to being down a penny at $3.20 on the day.  The volume was fast and rapid too: 275,000 shares mid-day versus average volume of closer to only 70,000 shares; its 52-week trading range is listed as $3.10 to $5.85.

Sequenom, Inc. (NASDAQ: SQNM) is up after announcing in an SEC filing that the U.S. District Court for the Southern District of California entered an order preliminarily approving a proposed settlement of the shareholder derivative actions consolidated.  Shares are up just over 5% at $6.22 on normal trading volume.

VIVUS, Inc. (NASDAQ: VVUS) is up despite the notion that insider sales hit the tape late in the week ahead of FDA decisions.  Shares are up over 7% at $12.07 on almost 3 million shares today.  Average volume is 3.8 million shares and the 52-week range is $4.27 to $13.68.

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JON C. OGG