(By Salman - iStockAnalyst Writer)
US stocks were higher in midday trade as better-than-expected housing data reinforced hopes of strong economic recovery.
Below we highlight few stocks that witnessed heightened activity on Monday.
Cephalon Inc. (NASDAQ:
CEPH): Shares of the biotechnology firm were battered on Monday after Cephalon reported disappointing results from a Phase II/III study for Cinquil, a proposed treatment for a rare esophageal disorder known as eosinophilic esophagitis. The disorder, for which there are few treatments on the market, is most frequently diagnosed in children. According to the Journal of Clinical Investigation, approximately 80,000 children in the United States have eosinophilic esophagitis. Analyses of the data indicated that patients treated with Cinquil showed a statistically significant reduction in esophageal eosinophil levels versus placebo. In the second co-primary endpoint, patients treated with Cinquil showed an improvement in their clinical symptoms; however, placebo treated patients also experienced an unexpectedly large improvement in their symptoms. "Conducting clinical studies in a new disease area is always challenging." Steve Tullman, CEO at Ception Therapeutics said. "We will continue to review the data from this study and from our ongoing open-label study to find the best path forward for Cinquil for the treatment of eosinophilic esophagitis," he added. Cephalon shares tumbled over 9% in midday trade on Monday.
Cigna Corp. (NYSE:
CI): J.P. Morgan analyst John Rex on Monday upgraded the shares of the managed-care company to overweight from neutral, as details about latest legislative developments on health reform are becoming clearer. The analyst believes that the profit margins could improve in the coming years. "While with the headwinds of unemployment, Medicare rates, flu and Cobra, it's difficult to get excited about 2010 operating results, we like the longer-term view more than we have in some time, with underwriting margins having reset to levels we haven't seen in years," Rex wrote in a note to clients. The US health insurer recently said that it is seeking to expand in China and elsewhere abroad. Shares of the company jumped over 7% in midday-trade.
Ciena Corp.(NASDAQ:
CIEN): Shares of the telecom equipment maker plunged over 8% after it announced Monday that it has agreed to buy the optical networking and carrier Ethernet business of bankrupt Canadian firm Nortel Networks for $769 million, beating out beat out Nokia Siemens Networks and its partner, private-equity firm One Equity Partners.
