Momentum generated by Cephalon Inc.'s positive Phase III trials ofMyotrophin for treatment of Lou Gehrig's disease continued to driveup the stock prices of the West Chester, Pa.-based company and otherbiotechnology firms.

After posting a 75 percent gain two days ago on the release of datashowing Myotrophin slowed progression of the deadly disorder andlessened severity of the disease, Cephalon closed Tuesday up another$1.50 to $19.87, an 8 percent jump.

Biotechnology indices of the American Stock Exchange (AMEX) andChicago Board Options Exchange (CBOE) also increased for thesecond day in a row. The AMEX index, which soared 10.16 pointsMonday, climbed another 4.79 points to 96.16 Tuesday. The CBOEindex gained a total of 7.15 points over two days, closing at 114.23.

Cephalon is developing Myotrophin, which is recombinant humaninsulin-like growth factor, with Chiron Corp., of Emeryville, Calif.Lou Gehrig's disease, or amyotrophic lateral sclerosis, is adegenerative neuromuscular disorder.

While Cephalon continued its rise, Chiron's stock(NASDAQ:CHIR), after jumping 12.5 percent, slipped back 75 centsTuesday to $61.

Independent Analyst Barbara Hoffman, of Hoffman & Co. in Denver,noted that the Cephalon data was the third piece of good news for thebiotechnology sector in the past several days.

Last week the FDA's Oncologic Drugs Advisory Committeerecommended approval of DaunoXome from Boulder, Colo.-basedNeXstar Pharmaceuticals Inc., and Ethyol from U.S. BiosciencesInc., of West Conshohocken, Pa.

Hoffman said the momentum fueling the surge in biotechnologystocks likely will continue.

"Now we've had a trend of positive developments and it doesn'tcompletely register immediately," she said. "A series of positiveevents gets people who were on the sidelines starting to invest."

Hoffman also observed that Phase III results of Integrelin from SouthSan Francisco-based COR Therapeutics Inc.'s are due out this month.

"If the Integrelin data are positive, as I would expect, those resultswill continue the upward trend in stocks," she added.

Genetics Institute Inc., of Cambridge, Mass., also gained 47 centsTuesday to close at $35. The day before the company's stock(NASDAQ:GENIZ) dropped $1.47, or 4 percent, in response tosuspension of Phase II trials of its recombinant human interleukin-12for advanced kidney cancer. The study was stopped after 12 patientswho received the drug were hospitalized and one of them died.

Four patients have been released from the hospital and GeneticsInstitute is continuing its investigation into the cause of the adversereactions. n

-- Charles Craig

(c) 1997 American Health Consultants. All rights reserved.