Monday's Health Winners & Losers

Biotech shares sank but big pharma stayed afloat Monday, amid scattered safety and FDA news.

One of the smaller stocks bucking the downward trend was Cardiome Pharma(CRME), which announced positive interim results from a 90-day midstage study of oral vernakalant for atrial fibrillation, or irregular heart rhythm. It also signaled that it is up for sale.

The ongoing trial of oral vernakalant was designed to find the appropriate dose to take into late-stage testing, and to further assess safety. The company said the interim analysis demonstrated statistically significant efficacy for the patient group receiving 500 milligram dose vs. placebo, and the drug was well-tolerated.

Cardiome said it hired Merrill Lynch as a financial advisor to evaluate partnership opportunities and alternative strategies that include acquisitions or a sale of all or part of the company. Shares shot up $2.23, or 36%, to $8.47.

Also, biopharmaceutical company QLT(QLTI), soared on an FDA action that benefitted its topical acne treatment Aczone. The agency removed a blood screening and monitoring requirement for the treatment, based on post-marketing studies that show no clinical evidence of anemia in patients taking it.

Shares rose $1.15, or 47%, to $3.60 on Monday.

Cardiome and QLT did little for the Nasdaq biotechnology index, which was slipping 21.1 points, or 3%, at 666.93 amid broader market losses. The Amex biotechnology index was also down, falling 21 points, or 3%, to 667.04.

Notably, the Amex pharmaceutical index, which contains fewer and larger stocks than the former indices, stayed afloat, edging up 2.12, or 0.73%, at 291.80. Big names, including Abbott(ABT), Johnson & Johnson(JNJ), Eli Lilly(LLY) and Merck(MRK), and Schering Plough(SGP), all stayed a few percentage points in the green and propped up the pharmaceutical index.

Meanwhile, Amgen(AMGN) and Wyeth(WYE) said Monday that they have added black box warning to rheumatoid arthritis and psoriasis treatment Enbrel. The label now includes additional language regarding screening and monitoring patients for tuberculosis, including patients who tested negative for latent tuberculosis infection.

The warning says tuberculosis has been observed in patients receiving a class of drugs called TNF-blocking agents, including Enbrel, and that tuberculosis may be due to reactivation of latent tuberculosis infection or to new infection. But updated labeling says that tuberculosis was observed in less than one tenth of a percentage point of patients in global clinical studies of more than 20,000 patients.

Amgen shares were down $1.31, or 2.9%, at $43.15, while Wyeth shares edged up 7 cents, or 0.2%, to $39.48.

In earnings, Mannatech(MTEX) said after the close Friday post market close that it swung to a fourth-quarter loss amid a 20% decline in North American sales and an accrual of $4.7 million for litigation-related expenses. Shares tumbled $1.12, or 13.8%, at $7.25.

Also, after announcing a widened fourth-quarter loss last week, Halozyme(HALO) suffered a few analyst actions Monday. Roth Capital lowered its price target for the stock to $6 from $9, and Brean Murray lowered its rating to $6 from $11. Halozyme shares lost 63 cents, or 12.7%, to $4.32.

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