Health Winners & Losers: Amylin

Health stocks dragged to start the week, in line with broader markets.

The Nasdaq and Amex biotechnology indices were down 1.4% and 1.9%, respectively. On its first day of action, the new Nasdaq OMX Global Biotechnology Index was down 1.3%.

Pharma stocks fared slightly better, with the Amex pharmaceutical index giving up only 0.9%. However, AstraZeneca(AZN) and King Pharmaceuticals(KG) were its only components that stayed in positive territory.

Of those that gave up the most ground: Schering-Plough (SGP)and Eli Lilly(LLY) gave up 2.2% and 1.9%, respectively.

Regulators warned medical professionals of six cases of pancreatitis, two of which led to patient deaths, possibly related to Amylin(AMLN) and Lilly's Byetta, and said they're working to strengthen the safety label for the diabetes drug.

Shares of Amylin fell 16%, to $28.86.

Dyax(DYAX) shares shot higher Monday after the company announced positive late-stage trial results for its Hereditary Angiodema (HAE) drug DX-88. The company said that a phase III trial, dubbed Edema 4, successfully met its primary and secondary endpoints. Dyax also said the drug was well tolerated with no drug-related serious adverse events reported.

Dyax is expected to file the last module of its application for DX-88 for FDA approval early in the fourth quarter based on the phase III study results announced on Monday. Dyax shares were up more than 10% to $4.78 in recent trading.

In analyst actions, Needham initiated coverage on Cardica(CRDC)with a hold rating. Shares were off by 26 cents, or 2.9%, at $8.87.