Friday's Health Winners & Losers

Biotech stocks followed the Bear Stearns(BSC Quote)-battered market into the red Friday, with major names Genentech (DNA Quote) and Amgen (AMGN Quote) both on the decline.

At its annual meeting with the investment community on Friday, Genentech said it expects 2008 earnings of $3.35 to $3.45 a share, lifting the bottom end of its prior projection of $3.30 to $3.45. It also affirmed its forecast for at least a 25% compounded annual earnings growth rate through 2010.

The company also said it plans to submit its cancer drug Avastin for approval for relapsed glioblastoma multiforme -- the most aggressive type of primary brain tumor -- in 2008, and will initiate a late-stage study on the drug as a first-line treatment for metastatic GBM.

Genentech shares were trading down $2.81, or 3.5%, at $78.60.

Separately, Exelixis(EXEL Quote) said Genentech has agreed to fund development of a cancer treatment candidate called XL518. Genentech will pay Exelixis $3 million and will handle the costs of developing XL518 after Exelixis determines the maximum tolerable dose.

When Genentech starts midstage testing, Exelixis will receive an additional $7 million. Genentech will sell the drug should it reach market, and the companies will share the profits.

Exelixis shares rose 12 cents, or 1.8%, to $5.59.

After ups and downs throughout the past five days, Amgen closed out the week in the red, shedding $2.67, or 5.6%, to $44.52. On Thursday an FDA advisory panel decided to further limit the use of anemia drugs, such as Amgen's Aranesp and Johnson & Johnson's(JNJ Quote) Procrit, in cancer patients amid safety concerns. The panel voted to recommend that the drugs should not be used in patients with metastatic breast cancer or cancer of the head and neck, for instance.

Johnson & Johnson shares were down 39 cents, or 0.6%, at $62.42.

Dendreon(DNDN Quote) shares also were on the decline Friday as analysts cast doubts about interim data due out in the second half of 2008 for prostate cancer therapy Provenge. Positive and statistically significant data would enable the company to amend its application for Provenge to satisfy the FDA requests.

But UBS analyst Graig Suvannavejh said in a report Friday that he lacks the conviction that the interim data will be positive, and subsequently continues to believe that the final data will be needed for potential approval. Dendreon shares gave up 46 cents, or 9%, at $4.61.

Dendreon and Amgen tugged at the Nasdaq Biotechnology Index, which fell 22 points, or 2.9%, to 730.49.

Elsewhere, Enzon Pharmaceuticals(ENZN Quote) inched up after activist investor Carl Icahn disclosed a 6.93% stake in the biopharmaceutical company. The billionaire said in the filing that Enzon's shares are undervalued and that the company should consider spinning off or selling certain assets, and maybe the entire company. Icahn has discussed this with Enzon's management, according to the regulatory documents filed with the Securities and Exchange Commission. Shares of Enzon company edged up just 5 cents, or 0.6%, to $8.55, but traded on double their normal volume.