Tuesday's Health Winners & Losers

Updated from 2:54 p.m. EDT

Analysts cast an optimistic eye on OSI Pharmaceuticals (OSIP Quote), and biotech pairs reported progress on a generally flat day Tuesday for the health indices.

OSI gained $1.81, or 5.9%, to $32.67 after an upgrade to overweight from underweight by JPMorgan Tuesday. The analysts said they expect label-expanding trial data for cancer drug Tarceva in the second half of 2008 to rev up sales, and they're optimistic about the long-term prospects. They now expect the company to earn $1.60 a share in 2008 compared to a prior estimate of $1.06; $2.10 vs. $1.18 in 2009; and $2.20 vs. $1.26 in 2010.

After announcing a pain-treatment collaboration with Pfizer (PFE Quote), Icagen (ICGN Quote) gained 16 cents, or 8.3%, to $2.08. Pfizer was down 31 cents, or 1.3%, to $23.58.

Regeneron Pharmaceuticals (REGN Quote) said Monday after market close that it received a $20 million milestone payment from Bayer (BAY Quote) in light of dosing the first patient in the phase III study for its VEGF Trap-Eye for age-related macular degeneration.

The stock gained a few ticks last week when Regeneron announced the initiation of the study. And investors seem to be happy with the milestone payment, as well. Shares rose 58 cents, or 3.6%, to $16.68.

Epix Pharmaceuticals(EPIX Quote) met a milestone in its pairing with GlaxoSmithKline(GSK Quote) regarding a discovery stage program prompting a $3 million payment from GSK in the next 30 days. Epix added 14 cents, or 3.4%, to $4.25.