U.S. stocks dropped Monday, hurt by biotechnology shares that were dragged down by a sharp decline in two drug makers following the suspension of a new drug, while a brokerage downgrade on General Motors Corp. and a drop in AIG hurt the Dow. Biogen Idec and Elan Corp. Plc suspended sales of their much-heralded multiple sclerosis drug after a patient died from a rare and often fatal central nervous system disease. Irish drug maker Elan tumbled 65 percent to $9.40 and Biogen dropped 44.5 percent to $37.35. The American Stock Exchange biotechnology index fell 6 percent. Shares of Teva Pharmaceutical Industries Ltd., which makes a rival multiple sclerosis drug, climbed 6.6 percent to $29.38. Dow component American International Group fell 2.5 percent to $66.61. New York Attorney General Eliot Spitzer is examining ties between the insurer and Coral Reinsurance as part of a wider inquiry into insurance industry accounting practices, the Financial Times said. --More 2344 Local Time 2044 GMT
