Tag - Kerx

Biopharmaceutical company Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX), reported this morning that its Phase 3 clinical trial of Sulonex for the treatment of diabetic nephropathy failed.

News of the failed trial sent shares plunging 84.4%, or $4.44 in pre-market trading, to a 52-week low of $0.82. Shares of Keryx Biopharmaceuticals have been trading in the range of $5.01 to $11.70 for the past 52 weeks.

The company said the primary objective of the study was to increase the proportion of patients that achieve therapeutic success at six months, compared with placebo over background therapy of maximal doses of ACE-inhibitors. 

Diabetic nephropathy is a progressive kidney disease that results in an increase in blood pressure (hypertension) and fluid retention in the body. It is a prime cause for dialysis in many Western countries.

The Russell 2000 was able to fight off the sloppy employment report and held just above the previous January lows on Friday, closing down 2.66, or 0.40% at 660.11. Still, it marked the lowest close on weekly charts since October 2005, and sets up that 650 area as vital support into this week’s action.

The Wholesale Trade data this morning at 10:00 a.m. ET is usually a yawner for traders, and shouldn’t be of much concern for stocks. In fact, the outside risk from economic reports won’t really kick into high gear until we get to Thursday’s Retail Sales release. Look for resistance on a bounce this morning at 666, 674 and 680. Meanwhile, support is at 654 and then at 650. A breach of the latter opens the door to a support vacuum as the market would be at long-term lows.

The Russell 2000 (NYSE: IWM) lost ground and fell more than the other major U.S. indices as economic concerns brought out the bears. The small-cap index declined 10.72 points, or 1.50%, to 705.72. The Dow Jones Industrial Average (INDU) shed 112.10 points, or 0.88%, to 12,582.18.

On a year-to-date basis, the Russell 2000 has retreated 7.87%, while the Dow is down 5.15% and the S&P 500 has let go 6.86%.

Fourth-quarter economic growth was as slow as initially projected, an inflation gauge moved up, and some small banks might not survive the subprime meltdown, according to today’s economic news.

Small-cap stocks fell out of the gate on news that the U.S. Commerce Department reaffirmed its initial estimate for fourth-quarter economic growth of 0.6% at an annual rate, disappointing economists expecting an upward revision to 0.8%.

The same report showed that an index measuring the prices paid by U.S. residents increased 3.9%, above the initial estimate of 3.8%.

Separately, the U.S. Labor Department said that jobless claims for the week ended Feb. 23 were 373,000, a larger-than-expected increase from the preceding week’s upwardly revised level of 354,000.

CyberSource Corp. (Nasdaq: CYBS) reported it agreed to buy Authorize.Net Holdings Inc. (Nasdaq: ANET) for approximately $565 million in a stock and cash deal.

Trump Entertainment Resorts, Inc. (Nasdaq: TRMP) reported that James B. Perry, its president and CEO, is leaving effective July 1.

Keryx Biopharmaceuticals (Nasdaq: KERX) announced the resignation of its senior VP and CFO Ronald Renaud, which will be effective June 27. Mark Stier, the New York, N.Y.-based company’s chief accounting officer, will assumer Renaud’s responsibilities.

These are the biggest percentage losers in Monday's trading among companies with market capitalizations under $500 million: