Monday's Health Winners & Losers

Most of the biotech bellwethers were higher Monday following a rally in the broader market, which was bolstered by enthusiasm for Bear Stearns'(BSC Quote) new takeout bid and relatively decent housing data.

The major biotech indices, the Nasdaq biotechnology index and the Amex biotechnology index, were up 4% and 3.8%, respectively. Among big names on the uptick were Amgen(AMGN Quote), which was rising 2.1% at $40.96; Gilead(GILD Quote), up 2.9%, to 49.86; and Biogen Idec(BIIB Quote), climbing 5% to $3.

Genentech, in fact, was the only large biotech presence not in the green. Its shares edged down 35 cents, or 0.4%, to $78.92.

Among news items, the U.S. Securities and Exchange Commission charged Canadian drugmaker Biovail(BVF Quote) and four current and former executives with a series of fraudulent accounting schemes. Biovail agreed settle the SEC charges and pay a $10 million penalty.

Former chairman and CEO Eugene Melnyk, former Chief Financial Officer Brian Crombie, current Controller John Miszuk and current Chief Financial Officer Kenneth Howling still face charges. Biovail said Miszuk and Howling are being re-assigned to non-officer positions within the company. Shares of the company were up 40 cents, or 3.5%, to $11.88.

Elsewhere, Cambrex(CMB Quote) disclosing the recall of one of its customers' products. While the company didn't disclose the name of the customer, a few analysts pointed to the recall of UCB's Parkinson's disease treatment patch, Neupro. It contains an ingredient called ritigotine, which Cambrex makes. Belgium-based UCB said the patch will not be available until at least May.

Canaccord Adams analyst Karl Keegan said it may take longer for the patch to return to market and lowered his Neupro sales estimate to $25 million from $100 million. First Analysis Securities downgraded Cambrex to equal weight from overweight. The stock traded down $1.31, or 16.4%, to $6.70 on Monday.

As for other analyst actions, Soleil Securities' Matt Renna upgraded Auxilium(AUXL Quote) to buy from hold. He based the upgrade on expected positive late-stage data from Xiaflex, a drug to treat a diabetes-related condition that causes the fingers curve inward, in the second quarter.

But Merriman Curhan Ford analyst Russell McAllister downgraded Auxilium to sell from neutral, citing a potential link between the drug and tendon ruptures, which could delay Xiaflex's approval.

Shares followed Renna's take, rising $1.98, or 8.2%, to $24.88.

Neurogen(NRGN Quote) tumbled after disclosing that its annual report includes a "going concern" qualification from the company's auditor. The qualification refers to auditors questioning Neurogen's ability to maintain its status as a functioning business. Shares edged down 31 cents, or 10%, to $2.77.