Health Winners & Losers: Vertex

Health stocks spent another day dipping into the red as business and clinical news were not enough to overcome the broader market sentiment.

Vertex Pharmaceuticals (VRTX Quote) said it sold the rights to future royalties in HIV drugs Lexiva and Agenerase for a one-time cash payment of $160 million. Both products are marketed by GlaxoSmithKline (GSK Quote) under a 1993 agreement. Agenerase has been largely replaced by Lexiva, which is marketed as Telzir in Europe. Vertex shares added 98 cents, or 3.4%, to $29.53, while Glaxo zigzagged to settle relatively flat at $43.71.

Gains in Vertex and OSI Pharmaceuticals (OSIP Quote), which was up 6% Tuesday, weren't enough to pull up the Amex Biotechnology index, which finished flat at 758.24. Components Genentech (DNA Quote) and Cephalon (CEPH Quote) each lost more than a dollar, falling 1.7% and 1.8%, respectively.

VNUS Medical Technologies (VNUS Quote) said Tuesday that it entered into an agreement with AngioDynamics (ANGO Quote) and Vascular Solutions (VASC Quote) to settle patent litigation that began in 2005. Venus is granting the companies a non-exclusive, non-sublicensable patent covering certain endovenous laser products.

AngioDynamics and Vascular Soutions will make upfront payments of $6.8 million and $3.1 million, respectively, for past litigation, and will pay a per unit royalty payments for endovenous laser products sold of shipped in the U.S. until 2017.

Venus shares rose 16.5% to $20.52, AngioDynamics finished flat on light volume, and Vascular Solutions added 74 cents, or 11.7%, to $7.06.

In ratings, Stanford Group initiated research on ViroPharma with a buy rating and $13 price target. Shares ended up 23 cents, or 2.4%, at $9.97 on Tuesday.