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Wednesday's Health Winners & Losers

Shares of biotech Iomai (IOMI) soared nearly 25.3% to $6.39 after the company said it will receive a contract from the Department of Health and Human Services to develop a patch to improve the efficacy of small amounts of flu vaccine, to help cover more individuals in the event of a pandemic.

The company could receive research costs plus a fix fee totaling $128 million. The department has already allotted $14.5 million to cover performance under the contract through March 31, 2008, Iomai says.

Shares of drug developer Xoma (XOMA - Get Report) jumped 6.4% to $2.50 after the company said it's expanding its collaboration with Schering-Plough (SGP) in the development of antibodies to treat cancer and immune diseases.

Shares of Angiotech Pharmaceuticals (ANPI) gained 5% to $9.03 after a Dutch court ruled in favor of the company and partner Boston Scientific (BSX - Get Report) in a patent dispute with Conor Medsystems (CONR).

Shire's (SHPGY) shares were up 1.4% to $64.45 after the pharmaceuticals company said it received regulatory approval for its ulcerative colitis drug Lialda.

Shares of Neurocrine Biosciences (NBIX) gained 5% to $12.33 after the stock was upgraded to overweight from equal weight by Lehman Brothers health care analyst Jim Birchenough.

Among other health stock winners Wednesday were GlaxoSmithKline (GSK), up 1.3% to $55.23; Johnson & Johnson (JNJ), 1% higher to $67.22; Abbott (ABT), rising 1.4% to $51.32; Wyeth (WYE) up 1.4% to $51.17; Novogen (NVGN), gaining 4.5% to $12.10; and Geron (GERN) growing 3.7% to $8.97.
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