Health Stocks in Motion

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Genentech (DNA Quote) was in the news Friday as the company submitted its application to the Food and Drug Administration for the drug Lucentis, a treatment for an eye disease called wet age-related macular degeneration. Genentech requested priority review for the drug, which would give the FDA six months to take action.

Genentech's submission is a threat to OSI Pharmaceuticals (OSIP Quote), which acquired a competing drug called Macugen when it bought Eyetech in November. OSI shares recently traded down 17 cents to $26.85, while Genentech shares fell 5 cents to $92.01.

Staar Surgical(STAA Quote) shares were up after the company disclosed in a Securities and Commission filing that it reached an agreement to settle a class action lawsuit for $3.7 million. The lawsuit, filed in April, alleged that the company and its CEO made false and misleading statements about the approval prospects of its Visian ICL product. The implantable lens was approved by the FDA last week. Staar Surgical, which didn't admit liability, said it expects insurance will cover its payments. The company's shares were up 38 cents, or 4.9%, to $8.13.

Shares of Valeant Pharmaceuticals (VRX Quote) moved higher despite news that the company received a non-approvable letter from the FDA regarding labeling for its drug Cesamet. The drug was approved 20 years ago to treat nausea and vomiting and other side-effects of chemotherapy treatments. The FDA had asked Valeant to update Cesamet's labeling after the company bought the drug from Eli Lilly (LLY Quote) last year. Valeant has since been withholding the launch of the drug, which is currently sold in Canada, pending approval of the updated label. The company said the FDA has requested additional data to address concerns over potential adverse events. Valeant shares were up 12 cents, or 0.7%, to $18.07. Shares of Par Pharmaceuticals(PRX Quote), which agreed in November to promote Cesamet after FDA approval, fell 76 cents, or 2.4%, to $31.34.