Health Stocks in Motion

Updated from 2:54 p.m.

Shares of Advancis Pharmaceutical (AVNC Quote) were among the worst-performing health and pharmaceutical stocks Tuesday, tumbling 62.2% after the company announced the termination of its GlaxoSmithKline(GSK Quote) collaboration.

The pharmaceutical company said that GlaxoSmithKline served the company notice that it would discontinue its collaboration effective Dec. 15. To date, Advancis has received an upfront, non-refundable $5 million payment and a subsequent non-refundable milestone payment of $3 million, which was recognized during the fourth quarter of 2003. Advancis expects to recognize another $3.5 million in deferred revenue during the fourth quarter of 2004.

In addition to announcing the termination of its relationship with Glaxo, Advancis posted a third-quarter loss of 41 cents a share on sales of $3.1 million. Analysts polled by Thomson First Call were expecting a loss of 47 cents a share on sales of $4.9 million. Shares traded down $4.53 to $2.75.

UnumProvident(UNM Quote) fell 9.8% after the disability insurance provider said it received additional subpoenas from the New York attorney general's office relating to compensation agreements between the company and insurance brokers. In June, the company disclosed that it received a similar subpoena from the New York attorney general relating to broker compensation and commission rates. The company said it continues to cooperate and that it would continue to provide any information requested. Shares traded down $1.33 to $12.19.

Shares of Decode Genetics(DCGN Quote) rose 11.4% after the company said that results from its phase IIa clinical trial of a heart-attack drug it is working on showed promising results. The results showed that the drug suppressed production of leukotriene B4, the product of the branch of the leukotriene pathway that Decode's research has linked to increased risk of heart attack. Decode's drug, DG031, was originally developed by Bayer(BAY Quote). Decode acquired the rights to it in November 2003. Shares traded up 75 cents to $7.36.