Health Winners & Losers: Amylin

P/>Health stocks closed out the week on a mixed note Friday.

The Nasdaq Biotech Index was down 0.5%, while the Amex biotech index crept up 0.3% with a little help from big biotechs Cephalon (CEPH Quote - Cramer on CEPH - Stock Picks), which added 2.03%, and Genzyme (GENZ Quote - Cramer on GENZ - Stock Picks), which tacked on 1.36%.

In the news, Novo Nordisk (NVO Quote - Cramer on NVO - Stock Picks) said Friday that the Food and Drug Administration will hold an advisory committee meeting on March 2, 2009 to discuss its application for liraglutide, a diabetes drug. The company submitted its application on May 23, and the previously expected FDA decision date was March 23. However, Novo Nordisk said Friday that because the advisory panel is meeting shortly before that date, the FDA indicated that it will probably have to extend its assessment period by a few months.

Novo Nordisk shares were down by $2.39, or 4.6%, at $51.71. Shares of Amylin(AMLN Quote - Cramer on AMLN - Stock Picks), which makes competing drug Byetta, were down 1.7%, to $21.11.

Amylin has been in the spotlight after recent discussion of cases of pancreatitis -- and four deaths -- in patients taking Byetta. Amylin and partner Eli Lilly are in discussions with the FDA regarding a change to the precaution area on the drug's label. The company said earlier in the week that there is still no known association between the drug and pancreatitis and that occurrences were in line with the overall type II diabetes population.

However, on Friday, Citi analyst Yaron Werber said in a note to investors that there were four times as many cases of pancreatitis in Byetta patients than in those taking Merck's(MRK Quote - Cramer on MRK - Stock Picks) Januvia, according to his analysis of adverse events reported to the FDA.

Moving on, Biogen Idec(BIIB Quote - Cramer on BIIB - Stock Picks) and partner Elan(ELN Quote - Cramer on ELN - Stock Picks) said Friday that they have begun the first study of Tysabri in cancer patients. The phase I/II study will look at the safety and potential anti-tumor activity of Tysabri in patients with relapsed or refractory multiple myeloma. The drug is already an approved treatment for multiple sclerosis and Crohn's disease. Biogen and Elan traded up 0.9% and 1.4%, respectively.

Medical device maker Spectranetics(SPNC Quote - Cramer on SPNC - Stock Picks) said late Thursday that it is at the center of a joint probe by the FDA and the U.S. Immigrations Customs and Enforcement (ICE). Shares rebounded 19.03% on Friday, after falling 41% on Thursday.

Spectranetics said the warrant is for information on the promotion, use, testing, marketing and sales of certain products used for plaque regrowth inside stents (tiny mesh tubes used to prop open clogged arteries and protect them from collapse) and payments made to medical personnel and an institution. The warrant also covers a variety of things related to catheter guidewires and balloon catheters manufactured by certain third parties outside the U.S., two post-market studies completed between 2002 and 2005, and payments to medical personnel in connection with those studies and compensation packages for some of the company's personnel.

Elsewhere, Caris & Co. initiated coverage on three other medical device companies: Medtronic(MDT Quote - Cramer on MDT - Stock Picks) with an "average" rating and a $60 price target; St. Jude Medical(STJ Quote - Cramer on STJ - Stock Picks) with a "buy" rating and a $55 price target; and Boston Scientific(BSX Quote - Cramer on BSX - Stock Picks) with a "below average" rating and a $12 price target.

Also, Goldman Sachs downgraded cancer drug company Imclone(IMCL Quote - Cramer on IMCL - Stock Picks) to neutral from buy Friday morning saying that a sum-of-the-parts analysis suggests a range valuation of $52 to $74, with an average of $64, which is near the current share price. Positive late-stage data on cancer drug Erbitux and Bristol-Myers Squibb's bid to buy the company have boosted shares in recent months. They were off by 11 cents, or 0.2%, at $63.83.