Friday's Health Winners & Losers

Health-care stocks closed out the week on a tepid note -- patent rulings, business updates and earnings did little to bolster shares in a rough market.

First, an update on generic-drug maker Teva Pharmaceutical's (TEVA Quote) pursuit to market Pfizer's (PFE Quote) Celebrex: The U.S. Court of Appeals threw out one patent, but said the other two were valid. Thus, Teva won't be able to market the generic version until 2014. Celebrex garnered $1.7 billion in U.S. sales in 2007.

The companies can request a rehearing or review by the U.S. Supreme Court. Teva's shares traded down 11 cents, or 0.2%, at $47.68, while Pfizer's shares shed 21 cents, or 1%, to $21.38 on Friday.

Also falling, Alkermes (ALKS Quote) edged down 9.2% to $11.26 after the company said it expects Eli Lilly (LLY Quote) to discontinue its program for AIR Insulin, an inhaled insulin product that the companies are developing for diabetes.

Alkermes said in a press release that it's not aware of any safety, efficacy or manufacturing issues, and believes the decision will be based on Lilly's evaluation of its own business prospects.

Alkermes is a component of the Nasdaq biotechnology index, which was down 0.4% at 751.81.

Elsewhere, a day after shares dropped more than 40%, Omrix Biopharmaceuticals (OMRI Quote) took a breath. Shares recovered $1.51, or 10.7%, landing at $15.60. Post earnings, Rodman & Renshaw analyst Michael King placed the stock under review, while Citi analyst Matthew Dodds stuck with a buy rating, but lowered his price target to $23 from $33. Also Cowen & Co. analyst Eli Kammerman reiterated an outperform rating.

Meanwhile, AngioDynamics (ANGO Quote) reined in guidance after Thursday's market close, sending the stock down $5.99, or 37.5%, to $9.99 on Friday.

The company said sales would range between $45 million and $47 million for the fourth quarter and between $165 million and $167 million for the year. Previously, the company had expected sales between $170 million and $175 million for 2008.

Analysts surveyed by Thomson Financial anticipate revenue of $49.9 million for the quarter and $172.5 million for the year.

Ista Pharmaceuticals(ISTA Quote) also found its shares in decline on Friday. Investors weighed a wider fourth-quarter loss and FDA delays for Xibrom QD, a once-daily ocular anti-inflammatory, and T-Pred, an experimental topical steroid for eye infections. The company said it will need additional clinical data in order for both products to be approved.

The company said it will resubmit clinical data for once-daily Xibrom QD in the second quarter. The drug is already approved in a twice-daily formula. It will need an additional study for T-Pred.

Lazard downgraded the stock to sell from hold, and Punk, Ziegel & Co downgraded the stock to market perform from buy, lowering its price target to $4 from $13. Ista Shares gave up $1.24, or 31.4%, to $2.71.