Health Winners & Losers: Halozyme

Health stocks traded Tuesday on a variety of business and regulatory news. The Nasdaq and Amex biotechnology indices hopped 1.7% and 1.4%, respectively. They outdid the Amex pharmaceutical index, which registered a 0.8% rise, more in line with the broader markets.

Bellwether Biogen Idec (BIIB Quote) tacked on $3.41, or 6%, to $59.30, while fellow biotech Genentech (DNA Quote) added $2.49, or 3.3%, to $78.39.

A component of the Nasdaq biotech index, Myriad Genetics (MYGN Quote) regained $5.87, or 12.9%, to $51.39 a day after the company said its experimental Alzheimer's treatment Flurizan failed a late-stage study and will no longer be developed.

More clinical news, Halozyme (HALO Quote) said late Monday that based on results of an ongoing phase I/IIa study its Chemophase combination treatment was well-tolerated and appeared safe with no dose-limiting toxicity. The company said it's planning to request meetings with U.S. and European regulators to discuss the optimal regulatory pathway for the drug's approval. It plans to initiate a pivotal program in 2009 using the highest combination dose studied in the phase I/IIa trial.

Shares climbed 45 cents, or 8.4%, to $5.83 Tuesday.

In business headlines, Johnson & Johnson (JNJ Quote) company Ethicon said that it received an offer from One Equity Partners to buy its Professional Wound Care business, although financial terms are not being disclosed. The business generated annual net sales of roughly $270 million in 2007.

Separately, J&J subsidiary Animas, a medical device company, said the Food and Drug Administration approved its OneTouch Ping insulin pump system, which communicates wirelessly so that patients can receive insulin without touching the pump.