Health Stocks in Motion

Updated from 2:26 p.m.

Shares of Corgentech(CGTK) were among the worst-performing health-related stocks Wednesday, falling 51.7% after the company and Bristol-Myers Squibb(BMY) said their investigational product for vein graft failure didn't meet primary or secondary endpoints in a late-stage trial.

Corgentech said that it does not plan to develop edifoligide any further and added that Bristol-Myers has advised the company that it will be terminating the collaboration agreement between the two companies. "We are fortunate to have a deep pipeline of products to choose from and have the ability to generate new product candidates very rapidly," Corgentech said. Shares traded down $2.60 to $2.43.

Kos Pharmaceuticals(KOSP) rose 28.8% after the company said it is in talks with Barr Laboratories(BRL) that could lead to a settlement that ends patent litigation surrounding Kos' Niaspan cholesterol drug. The companies said they expect the district court in New York that's hearing the case to discontinue and stay all proceedings so that the two companies can negotiate a definitive settlement agreement. If a settlement is not reached, however, the companies would have the right to reactivate the litigation. Shares of Kos traded up $9.46 to $42.31, while shares of Barr traded up 87 cents to $48.55.

Shares of Biovail(BVF) fell 10.4% after the Food and Drug Administration said the company's pain relief treatment would have to undergo more studies before it could be approved. In October 2004, Biovail's new drug application for Tramadol ER, a once-daily formulation of tramadol hydrochloride, received an approvable letter from the FDA; in March, the company submitted a complete response to the FDA. In its latest correspondence with the company, the FDA said "it is of the opinion that additional clinical data will be required," the company said. Biovail believes that its original new drug application (NDA) and response to the FDA in March support filing requirements. As a result, the company says it is considering a number of options. In the meantime, though, the company will immediately begin a clinical program that would address the FDA's comments, it said. Biovail expects to submit data from the new clinical program in late 2005 or early 2006. Shares traded down $1.76 to $15.23.

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