BioMarin, Human Genome Lead US Drug Stocks Higher

By Val Brickates Kennedy

U.S. drug stocks edged higher in early trading Thursday, with shares of biotech groups BioMarin Pharmaceutical Inc. and Human Genome Sciences leading the pack.

The NYSE Arca Pharmaceutical Index (DRG) was largely flat at 289.24 while the NYSE Arca Biotechnology Index (BTK) rose 0.6% to 832.59.

Shares of BioMarin (BMRN) jumped 8% to $16.85.

Late Wednesday, BioMarin reported that its third-quarter profit rose to six cents a share, from a penny in the 2008 quarter. Revenue increased 11% to $80.8 million.

BioMarin added that it now sees 2009 revenue coming in between $313 million and $327 million, narrowed from its previous forecast of $311 million to $336 million.

Analysts at Credit Suisse on Thursday raised their rating on BioMarin to outperform from neutral.

Shares of Human Genome (HGSI) climbed 7% to $19.32. Analysts at JP Morgan raised their rating on the stock to overweight from neutral.

The biotech group is expected to release additional clinical data on its lupus drug candidate Benlysta on Monday.

Mylan Laboratories (MYL) shares advanced 5% to $16.55.

Early Thursday, Mylan reported a third-quarter net loss of $40 million, or 13 cents a share, compared to profit of $182.4 million, or 47 cents a share, for the same period a year ago.

On an adjusted basis, the Pittsburgh-based drugmaker said third-quarter profit totaled $142.3 million, or 32 cents a share. A survey of analysts by FactSet Research produced a consensus forecast for a profit of 27 cents a share. The company reported total third-quarter revenues of $1.26 billion, down from $1.66 billion.

Mylan also raised its forecast for full-year 2009 earnings to a range of $1.24 to $1.28 a share, up from a previous range of $1.13 to $1.20 a share.

Allergan Inc. (AGN) shares rose 1% to $54.06.

The ophthalmology and dermatology products conglomerate reported net income of $179 million, or 58 cents a share, compared with $165 million, or 54 cents a share, for the 2008 quarter. Excluding various items, Allergan would have reported adjusted earnings per share of 70 cents versus 65 cents. Revenue was $1.141 billion versus $1.098 billion.

A poll of analysts by FactSet Research pegged the company at posting earnings per share of 69 cents, on revenue of $1.08 billion. The conglomerate said it now sees 2009 adjusted earnings coming in between $2.75 and $2.77 a share, with net product sales of between $4.35 billion and $4.4 billion.

-Val Brickates Kennedy; 415-439-6400; [e-mail]