Thursday's Health Winners & Losers

Biotech indices climbed Thursday as investors reacted positively to analyst actions, earnings and a long-awaited Food and Drug Administration panel meeting.

Amgen(AMGN Quote) and Johnson & Johnson(JNJ Quote) rose ground after an FDA advisory panel decided to limit the use of their anemia drugs in cancer patients, but stopped short of completely barring the drugs as feared.

The advisory panel recommended that anemia drugs should not be used in patients with metastatic breast cancer or cancer of the head and neck. They also voted to bar the use of anemia drugs in cancer patients with "curative" disease.

Amgen's shares added $2.19, or 4.9%, to $47.18. Johnson & Johnson shares edged up 26 cents, or 0.4%, to $62.81.

Among analyst moves, Piper Jaffray's Edward Tenthoff upgraded Millennium Pharmaceuticals(MLNM Quote) to buy from neutral, sending shares up 8%. He also upped his price target to $16.50 from $15, on high hopes for multiple myeloma drug Velcade. The drug is already approved in the U.S. for patients who've tried at least one treatment unsuccessfully, and is being considered by the FDA as a first line, or initial, treatment for MM. That decision is expected on or before June 20.

Millennium's shares added $1.09, or 8%, to $14.04. The stock, along with Amgen's, helped out the Amex biotechnology index, which added 15.66, or 2.3%, to 699.25.

Health insurer stocks gained ground after taking a thrashing this week following guidance cuts from Humana (HUM Quote) and WellPoint(WLP Quote). The climb came even after several analysts cut their price targets on the stocks.

Deutsche Securities lowered its price target for Humana to $51 from $83, and Lehman Brothers lowered its target for the stock to $37 from $81. Shares, however, rebounded $4.10, or 10%, to $44.98.

Lehman Brothers also cut its price target for UnitedHealth(UNH Quote) to $41 from $67, and UBS took its target down to $52 from $68. Still, UnitedHealth shares rose $1.60, or 4.4%, to $38.28.

In earnings, Shanghai-basedWuXi PharmacTech(WX Quote) jumped 9% after beating estimates. For the fourth quarter, WuXi earned $12.1 million, or 17 cents per American depository share, up from $4 million, or 7 cents per ADS, in the 2006 period. Revenue climbed to $37.1 million from $22.8 million.

Analysts surveyed by Thomson Financial expected a profit of 13 cents a share on revenue of $36.9 million. Shares of WuXi rose $1.83, or 9.48%, to $21.16.

Noven Pharmaceuticals(NOVN Quote) delayed its earnings release, sending shares down $1.24, or 10.5%, to $10.54.

Noven said the extension is needed so that it can address an open matter related to revenue recognition that was raised in an SEC comment letter. Specifically, it relates to the company's policy of deferring revenue recognition of upfront milestone payments, and recognizing them instead over the estimated life of its related licensed products.

Aspect Medical Systems'(ASPM Quote) shares dove after a study in the New England Journal of Medicine compared its Bispectral Index to an older product and found the former to be no more effective at preventing anesthesia awareness -- or some level of consciousness during surgery. Shares plunged $4.63, or 45%, to $5.64.