US STOCKS-Biotechs on track for 3rd straight decline as Gilead drags

NEW YORK, Sept 15 (Reuters) - Biotech stocks were tracking for their third straight decline on Monday, weighed down by a drop in Gilead Sciences (NasdaqGS: GILD - news) after the latest developments regarding its hepatitis C drug.

Shares (Frankfurt: DI6.F - news) of the drugmaker were trading down 2.1 percent to $101.45 after Gilead said the next version of the drug, which drew criticism for its previous cost of $84,000, would become more expensive.

The company also announced, however, that it reached a licensing deal with seven drugmakers based in India for its hepatitis C drug Sovaldi that will be sold more cheaply in 91 developing nations than the current $1,000-a-pill treatment.

The decline in Gilead sent the Nasdaq biotech index down 1.4 percent, giving the index a 3.1 percent decline over the past three sessions. The index is now down 3.8 percent from its most recent record high set on August 29. Gilead shares may be currently undervalued, however, as Thomson Reuters StarMine currently holds a $126.40 intrinsic value on the stock.

There was a bright spot in the sector as Avanir Pharmaceuticals was surging 64.5 percent to $11.09, putting it on pace for its best one-day performance ever after positive trial results from its Alzheimer's disease treatment.

Index snapshot at 10:41 EDT (1441 GMT):

* S&P 500 was falling 1.59 points, or 0.08 percent.

* Nasdaq Comp was losing 35.50 points, or 0.78 percent.

* Dow industrials was adding 11.3 points, or 0.07 percent.

* Russell 2000 was falling 9.24 points, or 0.8 percent.

* S&P MidCap was dropping 3.56 points, or 0.25 percent.

* S&P SmallCap was losing 4.52 points, or 0.68 percent.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)