Patent Ruling Hammers Drug HOLDR
Rising crude
buoyed the Energy Spider Wednesday, while a patent bombshell
in federal court slammed pharmaceutical stocks and Merrill
Lynch’s drug basket.
The Pharmaceutical
HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating) sank 5.9% after a federal appeals court
stripped Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating) of years of patent protection
for its blockbuster antidepressant Prozac. Barr Labs
(
BRL |
Quote |
Chart |
News |
PowerRating),
which is furthest along in developing a rival generic,
soared 27 to 72 3/4. Eli Lilly
(
ELI |
Quote |
Chart |
News |
PowerRating) plunged 32 1/32 to
76 1/2. The issue of patent expiration is a constant concern
in the pharmaceutical industry. Other drug makers fell in
sympathy with Lilly.
src=”https://tradingmarkets.com/media/images/fundmovers/flow080900-03.gif”>
src=”https://tradingmarkets.com/media/images/fundmovers/flow080900-04.gif”>
src=”https://tradingmarkets.com/media/images/fundmovers/flow080900-05.gif”>
For more on the
action in drug stocks, check out my
The News column.
The day’s biggest
gain among the exchange-traded funds went to the
Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating), which rose 2.9% ahead of a
positive earnings report from No. 1 chip-gear maker Applied
Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating). I discuss the stock in
The News.
src=”https://tradingmarkets.com/media/images/fundmovers/flow080900-06.gif”>
The Energy SPDR
(
XLE |
Quote |
Chart |
News |
PowerRating)
gained 1.8%. September crude futures jumped $1.23 to $30.35
a barrel. The American Petroleum Institute said Tuesday
evening that crude oil supplies dropped more than 2 million
barrels during the week ended August 4, raising concerns of
winter heating oil shortages.
src=”https://tradingmarkets.com/media/images/fundmovers/flow080900-02.gif”>
The Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating), which may be forming a cup-with-handle pattern,
eased 0.7%.
src=”https://tradingmarkets.com/media/images/fundmovers/flow080900-01.gif”>
Cisco’s
(
CSCO |
Quote |
Chart |
News |
PowerRating)
earnings report did little to help the tradable Internet
funds. The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) lost 4.5%, the
Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 2.7%, the Dow Jones Internet Index
iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 1.8%, the Internet Infrastructure HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating)
1.2%.
The
Cyclicals/Transportation SPDR
(
XLY |
Quote |
Chart |
News |
PowerRating) dropped 1.8%. One of
its largest components, Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) advised analysts
to lower estimates by 2 cents for the third quarter. Shares
in the world’s biggest retailer declined 4 3/8 to 53 1/4.
src=”https://tradingmarkets.com/media/images/fundmovers/flow080900-07.gif”>
src=”https://tradingmarkets.com/media/images/fundmovers/flow080900-08.gif”>