USA MARKET

IvyBot Robot - Is It Too Good To Be True?

noreply@blogger.com (memoas80) — Fri, 31 Jul 2009 00:00:37 PDT

July 29, 2009

IvyBot Robot - Is It Too Good To Be True?

IvyBot is the latest forex robot to be released and this one appears to be a little more advanced than most because it consists of four separate advisors (each trading the EUR/USD, EUR/JPY, USD/CHF and USD/JPY pairs) and claims to adapt to changing market conditions.

However is the IvyBot forex robot too good to be true?

I have to admit that with more and more forex robots being released on to the market, I seem to be getting more and more sceptical about them. I've never really used any of these robots myself, mainly because I don't have access to MetaTrader4, but the feedback I've received from many of my readers and subscribers has never been that positive.

Anyway going back to this particular product, the IvyBot robot certainly appears to be very impressive if you read the sales page with gains of between 475% and 920% per year every year since 2001.

But the various aspirational pictures of Rolls Royces, tropical islands, and piles of cash are certainly a big turn-off and you have to wonder why it's priced so cheaply if it's as profitable as it makes out to be.

I'm guessing that if it really was that profitable then they could easily sell a license to this robot to one of the major banks for several million dollars, but maybe I'm just being overly sceptical.

China Stimulus Opens Opportunities For Trade Partners -Xinhua

noreply@blogger.com (memoas80) — Wed, 04 Mar 2009 00:00:09 PST

http://www.djnewswires.com/eu China Stimulus Opens Opportunities For Trade Partners -Xinhua

BEIJING -(Dow Jones)- China's stimulus package and ongoing fast economic growth will benefit its trading partners struggling with the effects of the global financial crisis, a commentary by the official Xinhua News Agency said Wednesday.

The article, which was posted on the State Council's Web site a day before China's parliament is due to meet for its annual session, also said the country's massive foreign exchange reserves are a source of hope to financial institutions around the world struggling with inadequate liquidity.

Global finance and money markets benefit from China's policy of keeping the yuan stable, it said.

The column also called on large developing nations to be given a greater role in international financial and economic bodies, and said those countries are the world's best hope for a quick rebound from the crisis.

The author of the column wasn't named.


  Newspaper Web site: http://www.gov.cn

GBP/USD: Cable holding above 1.4000

noreply@blogger.com (memoas80) — Tue, 03 Mar 2009 23:59:07 PST

http://www.djnewswires.com/eu GLOBAL MARKETS: European Stocks To Push Cautiously Higher


  By Peter Nurse
  Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--European stocks are expected to open slightly higher Wednesday, after modest gains in Asia boosted confidence. However, investors are likely to remain very cautious, given continued signs of the extent of the global economic slowdown.

"With some optimism emerging in Asia overnight, expectations are for the European markets to open mostly higher," said Matt Buckland, a dealer at CMC Markets. "Overall, however, there doesn't seem to be a natural turning point now where investors are looking at stocks as being oversold, and the lack of confidence means risks remain heaped on the downside."

Buckland expects European indexes to push higher at the open, with London's FTSE 100 index set to add 32 points to 3544. He also sees Frankfurt's DAX index rising 24 points to 3715, and the CAC-40 index in Paris up four points to 2559.

Gains on the Shanghai Composite Index resulted in a degree of confidence returning to the markets in Asia, with the index posting gains of more than 4% on hopes the start Thursday of the National People's Congress will lead to further announcements on supportive measures for the economy.

China's February Purchasing Managers' Index also came in at 49.0, compared with January's 45.3 release. While a PMI reading under 50 indicates manufacturing activity is still contracting, the release offers some signs it may be nearing bottom.

Japan's Nikkei 225 index followed the more positive tone set by China, pushing out of the red seen earlier in the day to close 0.9% higher.

US Is Still Facing Hurdles In Regulating Financial Giants

noreply@blogger.com (memoas80) — Tue, 03 Mar 2009 23:52:18 PST

For all the federal government’s intervention into the world of business and markets, there’s one thing it still can’t do to stop the bleeding in the financial system—even though a lot of experts would like it to.

Under current law, no regulator has the authority to essentially take over a troubled bank holding company—conglomerates with a wide range of financial operations—the way the government routinely does with smaller, commercial banks.

Both FDIC Chairman Sheila Bair and Fed Chairman Ben Bernanke have made that crystal clear in recent days that even as the government injects more taxpayer capital into giant financial institutions such as Citigroup [C 1.22 0.02 (+1.67%) ] it can't actually shut them down even if officials saw fit and wanted to.

"You simply need a way of calling 'time out,' ” says former Treasury official Robert Glauber, who served during the savings and loan crisis. “They lack that and they know it. I believe you do need this.”

The regulatory framework shared by several different regulators is complicated. But experts and some in Congress even say the loophole of sorts may help explain the incremental approach of both the Bush and Obama administrations in dealing with the financial crisis, regardless of their ideological positions on nationalization.

LATIN AMERICAN MARKETS: Brazilian, Mexican Stocks Finish Higher

noreply@blogger.com (memoas80) — Tue, 03 Mar 2009 23:41:17 PST

By Carla Mozee

Mexican and Brazilian equities held to gains Tuesday as the U.S.' top central banker was grilled about the government's extended bailout of troubled insurer American International Group Inc., a move that contributed to a global sell-off a day ago that left regional markets battered.

The Bovespa, Brazil's benchmark equity index, rose 0.6% to 36,468, with steel, finance, and transportation issues pacing gains. Monday's sell-off pushed the index into negative territory on a year-to-date basis.

The index tracking the largest stock market in Latin America is now down 2.9%, but is still up compared with the benchmark S&P 500 Index .

Mexico's IPC rose 1% to 17,093.25, but remains visiting lows last seen in October.

Argentina's Merval, however, was stuck in the red on Tuesday, declining 1.5% to 922.63 The benchmark finished below the 900-points level a day ago for the first time since early December.

Chile's IPSA reversed course to end down 0.3% to 2,401.61.

Investors watched U.S. Federal Reserve Chairman Ben Bernanke answer questions from U.S. senators about the government's decision to invest another $30 billion in AIG, which, on Monday, unveiled a $61 billion loss for the fourth quarter, the largest loss ever recorded by any corporation. AIG had been given a loan package of $150 billion in November.

Bernanke, who had been called to testify about the country's fiscal position, said without the new funds, AIG would likely fail, which would severely hurt the banking and insurance systems.

ASIA MARKETS: Japan Auto Stocks Mixed After U.S. Sales Tumble

noreply@blogger.com (memoas80) — Tue, 03 Mar 2009 23:39:57 PST

By V. Phani Kumar

Shares of Japanese car companies were mixed Wednesday as investors considered their U.S. sales in February, which despite a drop of more than 35% from a year ago, were better than the slump experienced by the Big Three automakers.

In volatile afternoon trading in Tokyo, shares of Toyota Motor Corp. fell 2.5%, Honda Motor Co. (HMC) lost 3.9% and Nissan Motor Co. (NSANY) added 1.7%, as they continued to gain market share in the U.S., although the downhill trend in sales persisted.

The Nikkei 225 Average added 1.3%, rebounding from intraday lows, after dropping for three straight sessions.

Elsewhere in the region, Australia's S&P/ASX 200 lost 1.6%, South Korea's Kospi climbed 2.7%. China's Shanghai Composite jumped 3.2%, Hong Kong's Hang Seng Index rose 0.7% and Taiwan's Taiex advanced 2.5%.

The decline in the shares came after Toyota's monthly sales in the U.S. dropped 40% year-on-year to 109,583 vehicles, Honda's slid 38% to 71,575 units and Nissan's fell 37% to 54,249 cars and trucks. In comparison, General Motors' (GM) sales plunged 53%, Ford's (F) dropped 48% and Chrysler's by 44%.

In Seoul trading, shares of Hyundai Motor Co. (HYMTF) added 0.7% as the South Korean auto major continued to outperform both the U.S. and Japanese car companies. Hyundai's U.S. sales slipped just 1.5% to 30,621 vehicles in February, helped by higher sales of the Elantra sedan.

MARKET SNAPSHOT: S&P 500 Finishes At Worst Level Since December 1996

noreply@blogger.com (memoas80) — Sun, 01 Mar 2009 23:27:24 PST

By Kate Gibson

As stocks on Friday tallied another month of stiff losses, investors were especially focused on the S&P 500 Index, with the broad market gauge closing below its November lows -- and also below the 740-to-750 range some had hoped for.

"Only on a two-day close below 740 will I run for the hills. A close over 740 today would be considered a successful test of the November 2008 low," said Elliot Spar, market strategist at Stifel Nicolaus.

The S&P closed at 752.44 on Nov. 20, though the benchmark on Monday undercut that prior bear-market low. The S&P 500 (SPX) fell points to 17.74 points, or 2.4%, to 735.09, giving it a weekly loss of 4.5% and a monthly hit of 11%. The Dow Jones Industrial Average (DJI) shed 119.15 points, or 1.7%, to 7,062.93, leaving it with a weekly loss of 4.5% and a monthly decline of 11.7%.

"Hopefully we can get back to 800 on the S&P, but first we have to get past resistance at 752. If we can close above that one resistance level I think it would be a mild positive," said Robert Pavlik, chief market strategist at Banyan Partners LLC.

On Friday, financials led the declines, with Citigroup Inc. (C) down 39% on news the U.S. government was hiking its stake in the battered bank. .

The technology-laden Nasdaq Composite (RIXF) fell 13.63 points, or 1%, to end at 1,377.84, down 4.4% for the week and 6.7% for February.

February falls

LATIN AMERICAN MARKETS: Mexican Peso Hits Low As Banking Concern's Fate Is Weighed

noreply@blogger.com (memoas80) — Sun, 01 Mar 2009 23:26:56 PST

By Carla Mozee

Mexico's currency on Friday stumbled to a new all-time low, pressured by concerns about the fate of Banamex, one of the country's largest banks, after the U.S. government agreed to raise its stake in its troubled parent firm, Citigroup Inc.

Across the region, equities were mixed but still on track to post losses for the week and the month.

Mexico's currency pierced through the psychological level of 15 pesos per U.S. dollar, reaching a low of 15.217 after the U.S. agreed to raise its stake in troubled bank Citigroup Inc. (C) to 36%.

Citigroup owns Banamex, Mexico's second-largest bank measured by asset. Market players are watching for word that Citi may have to give up a portion or all of Banamex. Mexican law prohibits banks in the country to be run by any entity that is owned by a foreign government or sovereign wealth fund.

"The officials in Mexico are still trying to figure out a solution," said Nick Chamie, global head of emerging markets research at RBC Capital Markets.

MARKET SNAPSHOT: Stocks Look To New Lows As March Begins

noreply@blogger.com (memoas80) — Sun, 01 Mar 2009 23:26:16 PST

By Nick Godt

With the market slumping to fresh 12-year lows in the last stretch of February, stocks will kick off the month of March on an increasingly uncertain footing while investors try to determine where the bottom lies for the economy and the bear market alike.

"The path to least resistance remains down," said Alec Young, market strategist at Standard & Poor's. "We need some real capitulation, and for people to stop buying the dips and let it crash. Then, we could get a new low."

Data on U.S. employment and nonfarm payrolls, due next Friday, might get the ball rolling.

"Everyone knows it's going to be bad," Young said. "But we need even the most bullish people to give up and [the jobs report] might be the catalyst."

February sees more record losses

Friday closed the chapter on the worst February since 1933, with the broad Standard & Poor 500 index (SPX) down 10.9% for the month. The S&P thus stands down 18.6% in the year to date, making for the worst first two months of a year on record.

On Friday, the S&P finished at 735, its worst level since December 1996, after U.S. gross domestic product in the fourth quarter was revised sharply down to negative 6.2%.

MARKET SNAPSHOT: U.S. Stock Movements Increasingly Tied To Oil

noreply@blogger.com (memoas80) — Thu, 26 Feb 2009 08:20:13 PST

By Kate Gibson

The global recession and uncertainty about the future now has traders routinely bypassing what used to be market fundamentals, with the stock and oil markets increasingly taking their cues from one another, an analyst said Thursday.

"What I think we'll see coming up with the oil and stock markets is traders watching to see if demand for oil starts to increase, which is a positive signal to the stock market that the recession is starting to wane," said Mike Zarembski, senior commodities analysts at OptionsExpress.

On Thursday, financial and energy shares led a broad-based move higher as investors bypassed a slew of dismal economic reports on unemployment and the housing market to focus instead on government steps to bolster the nation's banking system.

The Dow Jones Industrial Average (DJI) climbed 123.45 points to 7,394.34. The S&P 500 (SPX) gained 13.55 points to 778.45, while the Nasdaq Composite (RIXF) added 18.26 points to 1,444.23.

On the New York Mercantile Exchange, crude gained $2.43 to $44.93 a barrel.

MARKET SNAPSHOT: Tech Is The Game Amid Financial, Economic Uncertainty

noreply@blogger.com (memoas80) — Mon, 23 Feb 2009 22:55:08 PST

By Nick Godt

Technology is the best performing sector so far in February, benefiting from investors playing an uncertain environment as both a defensive and a cyclical sector.

Technology, which defined growth in the 1990s, is down only 1.4% as a sector in February, making it the best, or the "least badly," performing sector this month. Healthcare, the most traditional defensive sector, is close behind, off 1.6% this month.

Investors have flocked to safe-haven sectors, as worries about the survival of big banks have led the financial sector to tumble 20% so far in February. The broad market, has measured by the S&P 500 index, is down nearly 18% year to date.

"The market is seeing tech as a defensive sector," said Owen Fitzpatrick, head of U.S. equities at Deutsche Bank. "With tech companies, there's not a lot of cash needs, so they don't need to access the credit flow."

BOND REPORT: Treasurys Pare Losses As Stocks Fall Back

noreply@blogger.com (memoas80) — Mon, 23 Feb 2009 22:53:31 PST

Deborah Levine

Treasury prices were little changed Monday, erasing earlier losses as stocks moved deeper into the red amid investors' concern about how the government will support financial institutions.

Ten-year note yields (UST10Y) inched up 1 basis point to 2.79%, after earlier reaching 2.88%. A basis point is 0.01%.

Yields on two-year notes (UST2YR), which move inversely to prices, was little changed at 0.95%, after having briefly risen above the 1% mark for the first time since Feb. 10.

Bonds retraced losses as U.S equities surrendered early gains, indicating continued concerns about the banking sector after the government detailed plans to begin "stress tests" of financial institutions.

"There are a lot more questions than answers right now," said Mario De Rose, a fixed-income strategist at Edward Jones & Co.

Safe havens such as U.S. government debt typically draw money from investors not inclined to buy into riskier assets, like equities.

Overstimulated: Government Spending and Its Impact on Bonds

noreply@blogger.com (memoas80) — Sat, 21 Feb 2009 22:28:51 PST

by Brandon Chapman, CMT

As the Obama administration settles in, many opaque revelations have emerged regarding possible policy action to handle banks and stimulate the economy. But among the uncertainty is a clear message that this administration and the Fed Chairman intend to spend our way out of the current economic slump. The efficacy of their actions and its eventual economical impact will likely create market indecision. Investors will do well to recognize where trading opportunities generated by these circumstances may arise.

Bonds Reaction
Amidst early rhetoric from the Obama administration, Treasury bonds with long-term maturities have failed to provide investors with much of a safe haven from January’s recurring stock sell-offs. In fact, Treasury bonds with 10- and 30-year maturities were met with selling pressure as prices fell and yields moved higher. This reaction is in contrast to the buying that occurred as equities fell at the beginning of January.

Interpretation
There are two factors investors can take away from long-term Treasury rates’ significant move higher.

First, the proposed spending amount will likely cause higher inflation down the road, making investors nervous because of the length of time required for these bonds to mature as well as their extraordinarily low yields. Along with future inflation concerns is the strong chance the U.S. will issue trillions more in debt during the upcoming years. This will likely prompt many foreign governments to diversify away from U.S. debt.

MARKET SNAPSHOT: S&P 500 Actively Slashing Dividends To Another Record Quarter

noreply@blogger.com (memoas80) — Sat, 21 Feb 2009 22:27:25 PST

By Kate Gibson

The stock market's fall Friday had the S&P 500 Index near its bear-market low as companies listed on the broad-market index engaged in another record- breaking quarter of slashed dividends.

After lapsing more than 200 points, the Dow Jones Industrial Average (DJI) recovered some to end at 7,365.67, down 1.3% for the day and 6.2% from last Friday's close, its worst week since Oct. 10. Earlier, the blue-chip index fell to an intraday low of 7,249.47, its lowest level since October 2002. The S&P 500 (SPX) also pared losses, falling 8.89 points, or 1.1%, to end at 770.05, down 6.9% from a week ago. The Nasdaq Composite (RIXF) declined 1.59 point, or 0.1%, to 1,441.23, leaving it down 6.1% on the week.

After leading losses earlier on, financials fronted sector gains in afternoon trade, which also had gold futures closing above $1,000 an ounce.

"Given the uncertainty with corporate earnings, gold is one area investors should be looking at to hedge themselves against the perception that the dollar decline is somewhere on the horizon," said Dan Greenhaus, an analyst at Miller Tabak.

Gold is often purchased as a hedge against inflation, which is not an immediate concern, with consumer prices flat for the past 24 months.

While inflation could be on the more distant horizon, it is an unlikely cause for concern for near-term investors, analysts said.

"The rational investor is hiding, not investing in gold, money markets and Treasurys -- those harbors of safety represent pent-up demand for stocks," said Art Hogan, chief market strategist at Jefferies & Co.

MARKET SNAPSHOT: Stocks At The Mercy Of Bank Nationalization Debate

noreply@blogger.com (memoas80) — Sat, 21 Feb 2009 22:25:35 PST

By Nick Godt

U.S. stocks are likely to face choppy waters next week, as the debate about whether or not to nationalize banks intensifies along with growing investor demand to rid the financial system of its toxic assets.

"Financial markets appear to be fixated on 'toxic' assets, and until they are removed from bank balance sheets, pressure will remain on the sector," said Benjamin Reitzes, an analyst at BMO Capital Markets.

Such concerns have helped drive the Dow Jones Industrial Average (DJI) to fresh six-year lows. For the week, the blue-chip average fell more than 6%, marking its worst week since October of last year.

The broad S&P 500 index (SPX) fell nearly 7% for the week, while the Nasdaq Composite (RIXF) lost 6%.

A big chunk of the pain came from the financial sector, where Bank of America (BAC) sank to new lows and Citigroup (C) fell to an 18-year low on Friday amid concern the government may take over the banks, wiping out their shareholders.

Senate Banking Committee Chairman Christopher Dodd on Friday said banks may have to be nationalized for a short time, according to Bloomberg News. But Robert Gibbs, the White House press secretary, said the Obama administration supports a privately held banking system.

While the comments seemed to help financial shares come off their lows Fridays, stocks on Wall Street have again taken a turn for the worse since last week after Treasury Secretary's Tim Geithner unveiled a plan to help ailing banks.

U.S. stocks travel higher as Obama pushes economic stimulus

noreply@blogger.com (memoas80) — Fri, 13 Feb 2009 08:02:46 PST

NEW YORK (MarketWatch) -- U.S. stocks erased early Friday losses to churn modestly higher as President Obama pressed for passage of an economic stimulus plan. The Dow Jones Industrial Average ($INDU:

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XM Satellite exchanged $172.5 mln in senior notes

noreply@blogger.com (memoas80) — Fri, 13 Feb 2009 08:02:10 PST

said Friday its wholly-owned subsidiary XM Satellite Radio Holdings had exchanged about $172.5 million aggregate principal amount of its outstanding 10% Convertible Senior Notes due December 2009 for a like amount of newly issued Senior Secured Notes due 2011. A total of $400 million in principal amount of the 10% Convertible Senior Notes due December 2009 was outstanding prior to this deal. The new Senior Secured Notes will mature

MARKET SNAPSHOT: As Goes January, So Goes The Year?

noreply@blogger.com (memoas80) — Fri, 30 Jan 2009 09:47:28 PST

By Nick Godt

The market is set for a 7% drop in January, not boding well for the rest of the year, if one believes the old adage.

According to research from Quantitative Analysis Service, the month of January tends to predict the direction the market will take for the year accurately 65% to 75% of the times.

"That's not an impeccable record," says Ken Tower, market strategist and senior vice president at the firm. "But, along with April, it definitely has a better track record at predicting the year than any other month in the year."

The S&P 500 index (SPX), used by most investing professionals as a gauge of the broad market, is currently on track for a 7.4% drop for January.

LONDON MARKETS: Banks Rally, But Mining Shares Drag Index Lower

noreply@blogger.com (memoas80) — Fri, 30 Jan 2009 09:46:48 PST

By Steve Goldstein

U.K. banks rallied on Friday, with a rise in mortgage approvals giving a modest boost to confidence, but losses from the mining sector dragged the top index to a lower close.

Barclays rose 5.8% and the Royal Bank of Scotland added 4.8% to conclude a wild week in the banking sector.

Approvals rose to 31,000 in December from 27,000 in November, though it still was the second-worst figure in history. Total net lending also rose.

"If these data continue to show an improvement in the flow of credit then this is tentative good news," said Alan Clarke, an economist at BNP Paribas.

After a volatile session, the FTSE 100 closed down 1% to 4,149.64, as markets took in a mixed reaction to economic data from the U.S.

Stimulus plan offers long and short term spending

noreply@blogger.com (memoas80) — Wed, 28 Jan 2009 19:26:39 PST

Nearly two-thirds of the federal economic stimulus plan will make its way into the economy by 2010, according to a recent report.

Various media reports cited information from the Congressional Budget Office showing that about two-thirds of the economic stimulus plan making its way through Congress would be spent by the end of fiscal year 2010.

In the short term, the tax cuts in the stimulus package may account for a good portion of the spending. The Washington Post cited CBO analysis which found that less than half of the money budgeted for infrastructure projects would be spent by late 2010, out of a total of $356 billion.

"Throughout the federal government, spending

noreply@blogger.com (memoas80) — Thu, 25 Dec 2008 21:35:06 PST

(RTTNews) - As the relations between India and Pakistan touched the nadir following the Mumbai terror attacks, Islamabad has offered to Tehran that it could buy New Delhi's share of gas from the proposed $7.5 billion India-Pakistan-Iran (IPI) pipeline project involving the three countries, media reports said Thursday.

A team of energy experts led by Pakistan's adviser to the Prime Minister on Petroleum and Natural Resources, Asim Hussain, will travel to IranDecember 29 to discuss the proposal.

During its two-day visit, the delegation will try to persuade its Iranian counterpart to sign an agreement to transfer the Indian share of gas to Pakistan in the next few months claiming that New Delhi has apparently lost interest in the venture after signing the nuclear deal with the U.S.

However, Tehran still wants New Delhi to be part of the project to "counter growing U.S. influence on its old ally in the energy sector".

Indian market higher in early trade

noreply@blogger.com (memoas80) — Thu, 25 Dec 2008 21:34:35 PST

(RTTNews) - Friday, the Indian market is trading firm on reports that that the government is likely to announce a second stimulus package in the next few days to lift slowing growth. Stocks across the sectors are trading in positive territory. Realty, oil/gas stocks such as Reliance Petroleum, BPCL & HPCL and metal stocks are rising sharply.

According to the commerce and industry minister Kamal Nath, the package may include steps to ease liquidity and relief measures for export and housing sectors. More measures to maintain the growth momentum in employment generating sectors like textiles, steels and pharmaceuticals are also expected to be announced.

However, the market is showing volatility on account of profit taking due to weekend considerations. Investors await inflation data scheduled to be released this afternoon. The index of wholesale inflation for the week ended December 13 is expected to have fallen to a fresh nine-month low of 6.61% from 6.84% a week earlier.

Euro Advances Against Dollar

noreply@blogger.com (memoas80) — Thu, 25 Dec 2008 21:33:53 PST

(RTTNews) - In early trading on Friday, the European currency strengthened to 1.4060 against the US dollar. On the upside, 1.4126 is seen as the next target level for the euro-dollar pair. The European and US markets were closed yesterday for Christmas holiday. The pair closed Wednesday's New York session at 1.4014.

For comments and feedback: contact editorial@rttnews.com

Deal close on automaker bailout

noreply@blogger.com (memoas80) — Thu, 11 Dec 2008 12:25:56 PST

he nation's leading automakers are likely to get at least some of the federal bailout assistance they've been lobbying for, with Congress and the White House reportedly close to a formal deal.

On Tuesday, White House press secretary Dana Perino indicated that "good progress is being made" on a bailout package, but acknowledged that various stumbling blocks remain. She also warned that automakers cannot expect to have long-term financing if they fail to show long-term viability.

Congressional Democrats are also saying they will hold the industry accountable as it tries to regain momentum. House speaker Nancy Pelosi said Tuesday that "there is not going to be an endless flow of money to this industry."

UPDATE: King Pharma, Pain Therapeutics Take Hit After FDA Nixes Pain Drug

noreply@blogger.com (memoas80) — Thu, 11 Dec 2008 12:24:47 PST

By Dan Gallagher

SAN FRANCISCO (Dow Jones) - The U.S. Food and Drug Administration said it cannot approve a pain drug called Remoxy that is being developed by King Pharmaceutcicals and Pain Therapeutics.

Shares of Pain Therapeutics (PTIE) plunged more than 20% to $6.19 on the news Thursday morning. King (KG) shares were off 6% at $9.36.

In a letter to the companies, the FDA said it believes "additional non- clinical data" will be required to support the approval of the drug, which is designed as an abuse-resistant form of the popular pain drug oxycodone. The companies said the agency has not requested or recommended additional clinical efficacy studies prior to approval.

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