Health Stocks in Motion

Updated from 1:23 p.m.

Corgentech (CGTK) plunged 59% after its edifoligide drug failed in clinical trials to effectively treat vein graft failure of the heart and leg.

The South San Francisco-based biotech company said the so-called E2F Decoy was generally well-tolerated during the 30-day observation period in a 1,400-patient, Phase 3 trial. But the primary and secondary endpoints failed to show a benefit in the edifoligide-treated group compared to the placebo group, as defined as the rate of vein graft failure over the 12 months following surgery.

Corgentech dropped $11.29 to $7.71, while partner Bristol-Myers Squibb (BMY) rose a penny to $23.94.

ID Biomedical (IDBE) jumped 9% after reaching flu vaccine distribution agreements with three big U.S. wholesalers.

The Vancouver-based company said it hammered out pacts for the marketing and distribution of its Fluviral vaccine with Henry Schein (HSIC), McKesson (MCK) and AmerisourceBergen (ABC).

ID Biomedical said it expects Fluviral to be licensed in the U.S. by at least the 2007/08 influenza season, meaning the transaction will cover at least eight flu seasons. The company said the deal could be worth between $2.3 billion and $2.5 billion to it.

ID Biomedical shares added $1.55 to $18.36.

QMed (QMED) fell 13% after the Eatontown, N.J., provider of disease management services completed a $6 million private placement at a discount.

QMed sold 571,428 shares to unnamed institutional investors at $10.50 apiece, which is more than $3 below the stock's closing price Friday. QMed said the deal represented a 6% discount to the stock's average trading price over the preceding 10 days.

QMed said it would also issue rights to buy 142,856 shares at $11 apiece. These rights will expire 30 days after the effective date of a resale registration statement covering the shares, which the company must file within 30 days of the closing.

QMed fell $1.80 to $11.75.

Genta (GNTA) surged 49% after saying studies indicated its Genasense anticancer injection showed "synergistic activity" with two non-Hodgkin's lymphoma drugs.

The Berkeley Heights, N.J., biotech said the results suggest its drug works with both Millennium's (MLNM) Velcade and with Genentech's (DNA) Rituxan.

Data were presented this weekend in sessions at the annual meeting of the American Society of Hematology in San Diego, the company said.

Genta rose 67 cents to $2.05.

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