Monday's Health Winners & Losers

Health indices were flat on Monday as investors speculated about Tysabri for Crohn's disease, treatments for menopause symptoms and RNAi therapeutics.

Biogen(BIIB Quote) and Elan(ELN Quote) investors appeared nervous Monday in light of the upcoming Food and Drug Administration panel review of Tysabri for Crohn's disease. Regulators are worried that the drug's benefits for Crohn's may not outweigh its risks.

Tysabri was taken off the market in 2005 when a small group of patients developed PML, a rare and usually fatal viral disease that occurs almost exclusively in patients with severe immune deficiency. It was put back on the market in 2006 for multiple sclerosis, but it can't be taken in combination with other immune-suppressing drugs.

Biogen shed $2.03, or 3.6%, to $54.99, while Elan fell $1.84, or 8.1%, to $17.46.

The Nasdaq biotechnology index, of which Biogen is a component, was up 0.84, or 0.11%, to 794.54.

On the winning side, pharmaceutical company Vivus(VVUS Quote) rose after announcing that the FDA approved Evamist, a spray to treat moderate to severe vasomotor menopause symptoms. It's the first spray of its kind that the agency has approved.

Based on this development milestone, Vivus is eligible to receive $140 million in cash as part of an agreement with KV Pharmaceutical(KVA Quote), sublicensing the exclusive rights to sell Evamist. KV will make the payment within five days of the transfer of the new-drug application for Evamist, which is expected by the end of the week.

Vivus, which could receive up to $30 million more tied to sales of the spray, gained 33 cents, or 6.2%, to $5.84, while KV Pharma was up 14 cents, or 0.5%, to $27.28.