Health Stocks in Motion: Elbit

Updated from 3:29 p.m. EDT

Shares of Elbit Medical Imaging(EMITF) were among the best-performing health and pharmaceutical stocks Monday, rising 7.8% after the company's device to treat uterine fibroids received regulatory approval.

The Food and Drug Administration's premarket approval for the company's ExAblate 2000 will allow Elbit to market its noninvasive surgery product for women who suffer from uterine fibroids, which is characterized by heavy bleeding or painful periods, bleeding between periods, and frequent urination (resulting from fibroid pressure on the bladder). At least 25% of women suffer from uterine fibroids, according to the U.S. National Institutes of Health. Elbit said that as many as 77% of women could suffer from the condition, but many women are unaware that they have it because they show no symptoms. Shares traded up 65 cents to $8.94.

Onyx Pharmaceuticals(ONXX) fell 33% after the company said that it would move forward with phase III testing of its kidney cancer treatment instead of relying on phase II testing results alone. Investors had hoped that Onyx could use results from phase II testing to file early with the FDA, but the company said that it would use phase II results to support the phase III study. As a result, Onyx now anticipates a U.S. launch of the product in 2006. Shares of Onyx traded down $13.47 to $27.34.

Shares of Medical Action Industries(MDCI) rose 5.3% after the company posted strong second-quarter financial results. The supplier of medical and surgical disposable products earned 26 cents a share on sales of $35.1 million. Analysts polled by Thomson First Call were expecting earnings of 24 cents a share on sales of $34.4 million. Looking ahead, the company expects third-quarter earnings of 23 cents to 25 cents a share. Analysts are expecting earnings of 26 cents a share. Shares traded up 83 cents to $16.46.