Sector Snap: Schering-Plough, Glaxo boost pharma stocks

The American Stock Exchange's pharmaceutical index, which includes several key pharma companies, gained 2.44 points to 299.55 in midday trading. Broader markets also gained ground Wednesday on a mix of positive earnings reports.

Kenilworth, N.J.-based Schering-Plough said its first-quarter profit plunged 48 percent because of higher spending and the buyout of Organon BioSciences. Excluding charges, though, the company topped Wall Street's profit forecast along with sales expectations.

Schering-Plough shares rose $1.02, or 6 percent, to $18.16.

Meanwhile, shares of U.K.-based GlaxoSmithKline PLC rose 45 cents to $44.18 after the company reported first-quarter profit inline with forecasts, though generic competition pushed earnings lower.

So far, the sector has benefited from a weaker U.S. dollar and a variety of cost-cutting measures. But a mix of hefty buyout charges, generic competition and regulatory issues have made the past week a lackluster one for the sector.

On Monday, Indianapolis-based Eli Lilly & Co. said strong sales for the depression treatment Cymbalta and impotence drug Cialis helped double first-quarter profit. Still, the results fell short of Wall Street expectations.

The stock rose 40 cents to $49.95 in afternoon trading.

Whitehouse Station, N.J.-based Merck & Co. reported a near doubling of profit on Monday and its results topped Wall Street expectations. Shares fell 14 cents to $38.37.

On Tuesday, Madison, N.J.-based Wyeth topped Wall Street forecasts despite tougher generic competition for its heartburn drug Protonix. Shares rose 43 cents to $44.42.