Health Stocks in Motion

Updated from 3:37 p.m.

Shares of Digene(DIGE Quote) were among the best-performing health-related stocks Wednesday, rising 22.6% after the company posted third-quarter earnings that easily surpassed Wall Street expectations.

Excluding items, the maker of diagnostic testing products posted earnings of $1.7 million, or 8 cents a share, on sales of $29.7 million. Analysts surveyed by Thomson First Call were expecting earnings of 4 cents a share on sales of $29 million. A year ago the company posted pro forma earnings of $1.6 million, or 8 cents a share, on sales of $23.6 million. Third-quarter results were driven by strong human papillomavirus test sales, which jumped 15% sequentially from the second quarter. Looking ahead, Digene forecast fourth-quarter earnings of 2 cents to 5 cents a share on sales of $32 million. Analysts are expecting earnings of 5 cents a share on sales of $32.2 million. Shares traded up $4.30 to $23.29.

Bone Care International(BCII Quote) rose 34.8% after the company agreed to be acquired by Genzyme(GENZ Quote) for about $600 million, net of the $119 million in cash that Bone Care had as of March 31. The all-cash deal values Bone Care at $33 a share, or 38% higher than Tuesday's closing price of $23.83. Genzyme expects the transaction, which should close during the third quarter of 2005, to be neutral to earnings in 2005 and accretive beyond that. Shares of Bone Care International traded up $8.28 to $32.11, while shares of Genzyme traded up 12 cents to $60.02.

Shares of Beckman Coulter(BEC Quote) fell 4.4% after the maker of testing instruments posted first-quarter earnings that fell below expectations and warned that second-quarter earnings would be below expectations as well. The company earned $41.4 million, or 62 cents a share, on sales of $576.1 million. Analysts were expecting earnings of 64 cents a share on sales of $574.9 million. A year ago the company earned $35.6 million, or 54 cents a share, on sales of $536.8 million. Looking ahead, Beckman Coulter forecast second-quarter earnings of 88 cents to 95 cents a share on sales growth of 5% to 8%, depending on currency. Analysts had been expecting earnings of 99 cents a share on sales of $647.8 million, or sales growth of 8.5%. Shares traded down $2.93 to $64.11.