Health Winners & Losers: Elan

Health stocks traded mixed and slightly lagged the broader market Wednesday as investors digested clinical data and earnings.

The Nasdaq and Amex biotechnology indices ended flat and down 0.3%, respectively, with a few stocks moving substantially on data presented at the International Conference on Alzheimer's Disease in Chicago.

Namely, Elan (ELN Quote) and Wyeth (WYE Quote) shed share value after data were presented following the market close Tuesday on Alzheimer's treatment bapineuzumab. Investors were more than underwhelmed with "mixed" data, sending Elan shares down $14.12, or 41.8%, to $19.63 Wednesday. Wyeth shares lost $5.37, or 11.9%, to close at $39.74.

The Food and Drug Administration mandated Wednesday that Amgen (AMGN Quote) change the label for anemia drug Aranesp to say the drug isn't indicated for patients undergoing chemotherapy with the intent to cure the patient, and also that patients with hemoglobin levels greater than or equal to 10 grams per deciliter not be started treatment on Aranesp.

Sales of drugs for chemotherapy induced anemia, such as Amgen's Aranesp and Johnson & Johnson's (JNJ Quote) Procrit have fallen sharply in light of safety concerns and reimbursement issues. Amgen executives said on the company's quarterly earnings call Monday that they expect Aranesp sales to enter 2009 at yet lower levels due to the label changes.

Amgen shares ended flat at $62.30, while J&J edged down 0.6% at $68.08.

In earnings, Cephalon (CEPH Quote) beat profit targets and raised guidance Tuesday post close. On an adjusted basis, the company reported profit of $84.5 million, or $1.25 a share, vs. $1.14 a share a year prior. Sales increased to $485 million, from $453.2 million a year prior.

Cephalon had previously guided to an earnings range of between $1.10 and $1.20 a share on sales of between $455 million and $465 million. The company and analysts, who were looking for earnings of $1.07 a share on revenue of $469.8 million, undershot results. Shares rose $1.82, or 2.5%, to $74.07.

Steris (STE Quote) said Wednesday that its fiscal first-quarter profit increased to $25.5 million, or 43 cents a share, vs. $13.2 million, or 20 cents a share, in the year-ago quarter. Revenue increased 11% to $311.6 million. Analysts surveyed by Thomson Financial, who typically factor out one-time items, were predicting earnings of 25 cents a share on revenue of $293.8 million. Shares rose $3.32, or 10.5%, to $35.07.

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