Tuesday's Health Winners & Losers

Updated from 12:31 p.m. EST with new stock prices

News on biotech and pharma pair-ups moved a few stocks on an overall here-and-there Tuesday for the health sector.

Regeneration Technologies(RTIX Quote) announced it will acquire surgical products maker Tutogen Medical(TTG Quote) in an all-stock deal worth around $263 million, or $12.86 a share. Tutogen shareholders will receive 1.22 shares of newly issued Regeneration common stock for each share of Tutogen common stock they own.

Regeneration shareholders will own around 55% of the combined company and Tutogen shareholders will own about 45% upon completion of the deal, which is expected to close in the first quarter of 2008 pending shareholder approval.

Regeneration expects $5 million to $6 million of identified annual cost savings between the companies, when the deal is fully realized, and expects it will add to its 2008 earnings, excluding one-time transaction costs and adjustments.

Regeneration shares fell 54 cents, or 5.1%, to $10.00 in recent trading, while Tutogen shares climbed $1.77, or 17.4%, to $11.92.

In other tie-up news, Sanofi Pastuer, the vaccines division of Sanofi-Aventis(SNY Quote), said Tuesday that it would partner with Acambis to develop and market a vaccine for West Nile Virus, which currently has no prevention or specific treatment.

Acambis will perform development activities for the candidate, which is in a phase II trial in adults more than 41 years old, up to the filing of a license application in the U.S. The company will receive an upfront payment of $10 million in addition to eligibility for $70 million more in postmarketing milestone payments. Sanofi shares rose $1.34, or 3%, to $45.99.