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June 29, 2010, 3:41 p.m. EDT

China jitters weigh on drug stocks; Javelin rockets

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By Val Brickates Kennedy, MarketWatch

BOSTON (MarketWatch) -- Investor jitters over the state of the Chinese economy weighed on both the broader market and the drug sector Tuesday afternoon.

The NYSE Arca Pharmaceutical Index declined 1.7% to 274.86, and the NYSE Arca Biotechnology Index fell 3.6% to 1,035.87. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.27% tumbled almost 300 points to rest at 9,845, largely over concerns that China's economic recovery was fizzling.

Javelin Pharmaceuticals broke sharply from the downward trend, with shares rocketing almost 60% to $2.18.

Late Monday, Hospira Inc. said that it plans to complete its tender offer of $2.20 a share for Javelin's stock by the end of the month. The deal had been stalled over Hospira's concerns about a recent recall of Javelin's pain medication Dyloject in the U.K. The product is awaiting approval in the U.S.

Earlier this month, Javelin sued to compel Hospira to follow through on their merger agreement, under which Hospira had also agreed to loan Javelin $2 million on June 1. Hospira has since agreed to fund the loan.

PSivida Corp. and partner Alimera Sciences /zigman2/quotes/205266417/composite ALIM -0.59% were also in the spotlight on news that Alimera has submitted a market application for U.S. regulatory approval of their ophthalmology product Iluvien, a treatment for diabetic macular edema. The condition is a leading cause of vision loss.

Alimera has also requested that Iluvien be granted priority review by the U.S. Food and Drug Administration, meaning that the agency could issue a decision on the product during the fourth quarter.

PSivida was up 1% in afternoon trading after climbing 8% earlier in the session. Alimera shares also jumped 8% before reversing course later in the day. Alimera's stock was lately down 6% at $7.60.

US : Dow Jones Global
+424.38 +1.27%
Volume: 320.97M
Aug. 12, 2022 6:27p
US : U.S.: Nasdaq
$ 6.73
-0.04 -0.59%
Volume: 10,651
Aug. 12, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$47.13 million
Rev. per Employee

Val Brickates Kennedy is a reporter for MarketWatch in Boston.

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