by Casey Lynch

NeuroInsights’ Neurotech Index reached new heights in mid November, gaining over 50% since its start in December 2003. As of November 30th, the Neurotech Index, is up 46% compared to respective gains of 12% and 11% for the S&P 500 and Nasdaq Composite Index. The Neurotech Index is also outpacing the NASDAQ Biotech Index, another life-science-oriented measure of the public markets, which has gained only 8% during the same period. This month saw several major moves in index companies.

Adolor (ADLR) was up this month on speculation that the new phase III trail for Entereg to be completed in March will address FDA concerns expressed in an approvable letter last July. Entereg, is being developed in collaboration with GlaxoSmithKline (GSK) for treatment of opiate induced bowel dysfunction.

Elan Pharmaceuticals (ELN), which will be joining NeuroInsights’ Neurotech Index in January, was boosted by news of FDA priority review for their multiple sclerosis drug Tysabri, which was voluntarily pulled in February due to potential toxicity. The drug could receive blessing from the FDA as soon as March 2006.

Pain Therapeutics (PTIE), recommended in the September issue of Neurotech Insights, gained over 40% after announcing a $400 million partnering agreement with King Pharmaceuticals (KG). A week later, the stock lost almost half of its gains after a phase III Oxytrex trial for osteoartiritis failed to meet significance on the primary endpoint. NeuroInsights believes that overall the trial data was encouraging and the stock dip provided a good opportunity to buy. The company, in a good cash position from the King Pharmaceutical partnership, intends to conduct a new phase III trial in 2006.

Two companies in NeuroInsights’ Neurotech Index, Eyetech (EYET)/ OSI Pharmaceuticals (OSIP) and Advanced Neuromodulation Systems (ANSI)/ St. Jude Medical (STJ) completed lucrative mergers this month.

From this month's Neurotech Insights.