Human Genome Sciences Shares Decline After FDA Recommend Benlysta

Elmo the Investment Banker is killing traders. 
Stick to Sesame Street Elmo. 
You aren't cut out for Wall St.

Just after Tuesday's FDA Recommendation for Human Genome Sciences' Lupus Therapy Benlysta, Citigroup and Bank of America downgraded the stock.  Obviously, they mistakenly shorted the stocks and wanted to get their money back after guessing wrong on the FDA decision.  The drug was recommended by a 13-2 vote.  It is very similar to other cases in recent FDA Approvals, where the stock has actually has gone down on good news, not up.

Manipulating shorts cover their positions by making sure they got analysts on their side to downgrade a stock in case a Panel vote goes against them. Here is a perfect example of how Hedge Fund Shorts cover their positions:

Two downgrades Wednesday morning, one each from Citi and Bank of America/Merrill Lynch, reflected these new concerns and sent Human Genome shares down 7% to $23.98 in early trading.

An advisory panel convened by the U.S. Food and Drug Administration voted 13-2 Tuesday night to recommend Benlysta's approval as the first new lupus therapy in 50 years.

Black Monday 1987: History of Wall Street

Image via WikipediaLessons learned

Commentary: On this day 23 years ago, the stock market crashed
 
By MarketWatch

CHAPEL HILL, N.C. (MarketWatch) — Today is a somber anniversary for anyone who is at least 45 years old.

And while anyone younger than that probably doesn’t remember what happened on Oct. 19, 1987, since they were not yet out of college, they should also study what happened on what came to be known as Black Monday. This includes most mutual fund managers, by the way.

If you would like more Subscribe To BioPharma Investor for everyday stock news and up to date FDA decisions.  Biopharma Investor

Savient Soars On Gout Treatment Approval While Arena Slumps On Weight Loss

Image via Wikipedia

Market Pulse
Sept. 15, 2010, 1:14 p.m. EDTSavient shares soar on FDA gout treatment approval

SAN FRANCISCO (MarketWatch) -- Shares of Savient Pharmaceuticals Inc. (SVNT 20.23, +0.25, +1.24%) jumped Wednesday after the biotech company said the Food and Drug Administration approved its gout treatment. Savient shares rose 29% to $19.09 in recent trading. The FDA approved Savient's Krystexxa for the treatment of hard-to-treat gout in adults. Gout is a type of arthritis where uric acid crystallizes in the joints causing inflammation and pain. Savient expects Krystexxa to be available on the U.S. market later in the year, and said the drug is protected by patents out to 2026

Biotech Stocks

Sept. 14, 2010, 1:11 p.m. EDT

Arena plunges on FDA news; drug indexes climb

Two dangerous Myths About the Economic Stimulus Package

Image by Getty Images via @daylife Here's a good read about the stimulus.

By Rex Nutting, MarketWatch

Commentary: We'd be in a much deeper hole without government's help

WASHINGTON (MarketWatch) -- We are in danger of making a dangerous U-turn on economic policy because our judgment is clouded by common misconceptions about the government's stimulus programs.

In some cases, Republican leaders have deliberately distorted some of these programs to spread doubts about the Democrats' policies. In other cases, urban myths have sprouted up without anyone deliberately fertilizing them.

Here are two of the worst misconceptions.

Myth 1: TARP and the stimulus are the same thing

Jazz Up Today Before Tomorrow's FDA Hearing, While Xoma Has Reverse Split

Image via Wikipedia By Val Brickates Kennedy, MarketWatch

BOSTON (MarketWatch) -- Shares of biotech group Xoma Ltd. spiked over 1,000% at market open Wednesday as the company conducted a 1-for-15 reverse stock split in order to boost its stock price to meet Nasdaq compliance rules.

For the next 20 trading sessions, Xoma will trade under the stock symbol XOMAD to reflect the split; after that time, the stock will revert back to its previous trading symbol of XOMA.

Xoma also announced that it has sold its royalty rights to the antibody treatment Cimzia for $4 million to an undisclosed buyer. The product, which is approved in the U.S. for the treatment of Crohn's disease and rheumatoid arthritis, is marketed by UCB S.A.


Shares of Xoma(XOMAD 3.68, -0.54, -12.82%), trading under its new symbol, were down 11% at $3.77.

Jazz Pharmaceuticals shares (JAZZ 11.37, +1.12, +10.93%) rallied after documents released by the U.S. Food and Drug Administration revealed that agency reviewers believe its drug candidate JZP-6 is effective in treating the pain condition fibromyalgia. The documents, however, also showed that they still have certain safety concerns about the medication.