Today's Health Winners and Losers

Shares of Neurocrine Biosciences(NBIX) were among the worst-performing health-related stocks Tuesday, plummeting 60% after the Food and Drug Administration gave conditional approval to the company's Indiplon capsules in 5-milligram and 10-milligram doses, but rejected the tablets in a 15-milligram dose strength.

"While we are disappointed in the FDA action, we will move forward expeditiously to address the FDA's outstanding questions regarding the applications," the company said. "We are heartened by the approvable action for Indiplon capsules and are dedicated to working with the agency to expedite response to the action letters."

Shares of Neurocrine recently were down $32.65 to $21.98. Shares of Dov Pharmaceutical(DOVP), meanwhile, were hammered on the news as well. The company licenses Indiplon to Neurocrine. Shares in Dov were recently trading down $4.01, or 57%, to $3.04. Shares in Sepracor(SEPR), which makes a rival insomnia drug, climbed $6.06, or 14%, to $50.88 on the news.

Dyax(DYAX) slumped 17% after the drug developer said that more work is needed for its hereditary angioedema treatment before it could be approved. According to the FDA, Dyax "will likely need to complete some incremental clinical work, most probably a dose-ranging study on subcutaneously administered DX-88 to secure final approval," the company said.

Dyax said that it and Genzyme(GENZ), the company's partner in the development of DX-88, would evaluate their options to address the FDA's concerns. "The FDA wants data to ensure that the current 30 mg fixed dose of DX-88 is, in fact, the optimal dose for subcutaneous administration," Dyax said. The company said the latest developments would likely affect its anticipated 2007 regulatory approval date. Shares of Dyax were recently trading down 60 cents to $2.87, while shares of Genzyme fell 87 cents to $55.09.

Shares of Brookdale Senior Living(BKD) moved higher for a second straight day. On Friday night, the operator of senior-living facilities agreed to acquire American Retirement(ACR) for about $1.2 billion in cash. The acquisition will create the largest operator of senior-living facilities in the U.S. Brookdale shares, which jumped 14% on Monday, were recently up $5.12, or 12%, to $47.35.