Sector Trade: BioPharma

In late breaking news CNBC’s Pharma reporter Mike Huckman reveals that Pfizer is discontinuing a late-stage study of its cancer drug Sutent as an initial treatment for colon cancer because the drug is not proving effective enough.

Sutent is approved for advanced kidney cancer and gastrointestinal cancer.

The clinical trial compared the drug in combination with a type of chemotherapy against patients taking the chemotherapy alone. The Sutent combination was no more effective at improving the time a patient survives without the cancer progressing.

In addition, Huckman explains that AMAG Pharmaceuticals said on Tuesday U.S. regulators have approved its injectable anemia medicine Feraheme and that it will be made available to patients by the second half of July, lifting shares of the company by 5 percent after hours.

AMAG said the U.S. Food and Drug Administration had approved the drug as an iron replacement therapy in adults with iron deficiency anemia that have chronic kidney disease.

What’s the trade?

It might be worth playing AMAG for a little bit of a ride, counsels Guy Adami.

I think the trade is long XBI , adds Joe Terranova.

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* and The Associated Press