Health Stocks in Motion

Updated from 2:20 p.m. EDT

Shares of Forbes Medi-Tech(FMTI) were among the best-performing health and pharmaceutical stocks Friday, rising 33.6% after the company's cholesterol product received European Commission approval.

The company's Reducol product gained approval for use in milk-based beverages. According to the company, the approval of Reducol eliminates the requirement for more scientific evaluation to incorporate the ingredient into other approved food categories. "The approval of Reducol in milk-based products creates a major opportunity for Forbes Medi-Tech to attract new contracts, drive revenue growth and increase shareholder value," the company said. Forbes plans to file a "substantial equivalence notification" letter with the EU Commission informing it of the company's intention to sell Reducol for use in other food groups as well. Shares traded up 73 cents to $2.90.

Biosite(BSTE) fell 1.7% after the company announced that Roche Diagnostics filed a complaint in U.S. district court in Indianapolis alleging that Biosite infringed on two of its patents. Biosite said the suit is without merit and vowed a vigorous defense. Shares traded down 92 cents to $53.28.

Shares of NeoPharm(NEOL) rose 14.3% after the company reached a compromise agreement with John Kapoor, NeoPharm's founder and largest shareholder. As a result of the agreement, Kapoor will end his consent solicitation seeking to remove four independent directors. Pursuant to the new agreement, NeoPharm has increased its board to eight members from six; two board members have resigned; four new independent directors have been appointed to fill the two vacancies and to replace the two members who resigned; and Kapoor will be reimbursed up to $350,000 for costs incurred in connection with the solicitation. Finally, the company also amended its stockholder rights plan. As a result of the amendment, Kapoor will not be deemed an "acquiring person" under the plan unless he becomes an owner of more than 30% of NeoPharm's outstanding stock. Shares traded up $1 to $8.