Its banging, Nuvelo spikes on drug trial rumors
Shares of the drugmaker soar more than 50% as analysts say its partner Bayer will extend further trials on a blood clot dissolver.
April 9 2007: 1:59 PM EDT
BANGALORE (Reuters) -- Shares of Nuvelo Inc. surged 50 percent Monday and an analyst said rumors of Bayer taking the biotechnology company's experimental blood clot dissolver for further trials were fueling the rally.
"There is an unsubstantiated rumor that Nuvelo's partner Bayer will take alfimeprase into a stroke trial," Piper Jaffray & Co. analyst Caroline Stewart said by phone.
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Nuvelo (up $1.92 to $5.64, Charts) was the highest percentage gainer on the Nasdaq.
San Carlos, California-based Nuvelo and Germany-based Bayer had temporarily suspended enrollment in all trials of the drug, alfimeprase, after it failed to meet its main goal in two late-stage studies in December.
"I can't imagine there being anything else to drive this kind of stock movement," Stewart, who has a "marketperform" rating on the stock, added.
A Nuvelo spokeswoman said the company has no comment to offer on the stock movement.
"There is absolutely no news and no announcement," Shelly Guyer said by phone.
"We have told the Street that we will let them know in the first half of 2007 our plans for alfimeprase and whether we will proceed or not," Guyer added.
Bayer was not immediately available for comment.
Alfimeprase, which was initially targeted as a safer, more effective treatment for complications caused by blood clots, was expected by analysts to become a treatment for much bigger markets, such as stroke, with projected annual sales of as much as $2 billion eventually.
Shares of Nuvelo competitors Pfizer (up $0.11 to $25.95, Charts), Johnson & Johnson (up $0.05 to $61.60, Charts), and GlaxoSmithKline (down $0.03 to $56.21, Charts) were little changed in afternoon trade.
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