Health Stocks in Motion

Idenix Pharmaceuticals (IDIX Quote) was among the best-performing health-related stocks Monday, gaining 15% after the company reported promising data for a hepatitis C treatment.

The biopharmaceutical company said partial four-week data from its Phase IIb trial of valopicitabine combined with the drug Pegasys resulted in a "rapid and marked" reduction in patients' hepatitis C virus levels. After four weeks of treatment, the average reduction in virus levels was roughly 99.99% among patients that began with 800 mg of valopicitabine. Idenix is presenting additional data from the trial in the spring and will begin a Phase III trial in the second half of 2006. The company's shares recently were up $2.53 to $19.39.

Shares of BioLase Technology(BLTI Quote) rose 12% after the company estimated its fourth-quarter revenue to be $19 million. Two analysts polled by Thomson First Call have an average estimate for revenue of $17 million. BioLase, which makes lasers for dentistry and medical procedures, also expects its cash flow from operations to be neutral for the quarter. Shares were up 98 cents to $8.94.

Emisphere Technologies (EMIS Quote) shares surged 23% after an Indiana judge ruled that Eli Lilly(LLY Quote) breached certain contractual obligations. According to Emisphere, the judge said that Lilly's license agreements with Emisphere for oral parathyroid hormone, which is used to treat osteoporosis, were properly terminated. Emisphere ended its license agreement with Lilly in 2004, citing breach of contract, and Lilly filed a lawsuit to stop the move. The judge's decision upholding the termination allows Emisphere to license oral PTH to Novartis(NVS Quote). Emisphere shares were up $1.06 to $5.73.

Lilly, meanwhile, signed a deal with Alkermes (ALKS Quote) to develop an inhaled version of the parathyroid hormone. Under the terms of the agreement, Alkermes will receive product-development funding, as well as upfront and milestone payments. Lilly will have exclusive rights to products resulting from the collaboration and will pay Alkermes royalties based on product sales. Lilly currently markets an injectable version of the hormone under the name Forteo. Lilly shares rose 65 cents, or 1.1%, to $58.47, while Alkermes shares shot up $1.72, or 7.4%, to $24.83.