Health Stocks in Motion

Shares of SciClone Pharmaceuticals(SCLN Quote) were among the worst-performing health-related stocks Wednesday, tumbling 41% after the company's hepatitis C drug Zadaxin failed to provide a statistically significant benefit for patients in a Phase III trial.

"While all of us at SciClone are disappointed that this trial did not achieve statistical significance, there are several other important trials ongoing for Zadaxin including the triple therapy HCV clinical trial as well as a phase 2 malignant melanoma trial, both trials being conducted in Europe," the company said. Zadaxin was well-tolerated in the trial and no treatment-related toxicities or side effects were reported.

Looking ahead, SciClone expects to release data in May from a second Phase III trial of Zadaxin in combination with pegylated interferon alpha to treat certain patients with early cirrhosis of the liver. Shares were recently trading down $1.56 to $2.29.

Matrixx Initiatives(MTXX Quote) rose 8% after the company lifted its 2005 earnings and sales guidance. The developer of over-the-counter pharmaceutical products now sees earnings growth of 35% to 45% and sales growth of 45% to 50%. Previously, the company projected earnings growth of 10% to 20% and sales growth of 25% to 35%. "The increase in guidance for 2005 reflects ongoing growth of our Zicam brand and the successful introduction of new products," the company said. During 2004, Matrixx earned $5 million, or 52 cents a share, on sales of $60.2 million. Analysts project 2005 earnings of 76 cents a share and sales of $81.2 million. Shares were trading up $1.50 to $20.61.

Shares of Charles River Laboratories(CRL Quote) fell 4% after the company warned that 2006 earnings would fall short of expectations. The company, which provides products and services for drug research, sees earnings of $2.07 to $2.13 a share. Excluding stock-based compensation costs, the company sees earnings of $2.46 to $2.52 a share, which is below the $2.57 a share that analysts project. The company sees sales growth of 7% to 9%. Analysts forecast sales of $1.21 billion.