Wednesday's Winners & Losers: MannKind

Pfizer (PFE Quote) and Nektar (NKTR Quote) said Wednesday that in a review of data they found more diabetes patients taking their inhaled insulin treatment Exubera developed new lung cancer than those who were in a control group. Furthermore, Nektar said it will spend no more money on the program and will cease attempts to find a partner for it.

Nektar shares dropped 25% to $5.39. Shares of fellow inhaled insulin developer, MannKind (MNKD Quote), fell 59.8% to $2.35 as investors speculated about the feasibility of its inhaled insulin product, which is in late-stage development.

Shares of GPS-based navigation devices maker Garmin(GRMN Quote) continued to slide following a revenue warning by its rival TomTom on Tuesday. Garmin's stock shed $2.57, or 5.3%, to $45.90.

IT security company Websense(WBSN Quote) was up $1.22, or 6.6%, to $19.86 after the company reaffirmed its guidance for the year and said it expects first-quarter profit above Street expectations. Websense forecast revenue for fiscal 2008 between $325 million and $335 million and EPS, excluding charges, in the range of $1.15 to $1.25. Analysts are expecting revenue of $334.04 million and EPS of a $1.23.

Dutch biotech Crucell (CRXL Quote) said Wednesday that in an early-stage 40-patient study in South Africa, its tuberculosis vaccine prompted an immune response and met safety goals. Shares rose 6% to $18.95.

Shares of The Pantry (PTRY Quote), a Sanford, N.C.-based operator of a convenience store chain, fell 25%, well below its 52-week low, to $16.43. The company forecast a second-quarter loss of between 24 cents and 30 cents a share, including a one-time charge of 23 cents. Analysts polled by Thomson Financial, who do not typically include one-time items, expect a profit of 17 cents a share.

Morgan Stanley (MS Quote) subsidiary MSCI (MXB Quote), which provides investment decision support tools, plummeted 10.7% to $27.51. MSCI announced that Morgan Stanley will sell up to 28 million shares of MSCI class A common stock, par value a penny a share and said that Morgan Stanley may divest completely. MSCI also reported first-quarter financial results that showed a 17.1% drop in net income to $17.9 million, or 18 cents a share.