Health Winners & Losers: Vertex

Biotech and drug stocks generally participated with the large late-day rally in the U.S. stock market. The Amex biotechnology index soared 2.9% to 793.93, and the Amex pharmaceutical index climbed 2% to 295.61.

Bucking the trend, however, was Dynavax Technologies (DVAX Quote - Cramer on DVAX - Stock Picks), which announced it replied to the Food and Drug Administration's request for information on Heplisa, an experimental hepatitis B vaccine the company's developing with Merck (MRK Quote - Cramer on MRK - Stock Picks).

In its response, Dynavax confirmed that one of the 1,819 subjects who received the drug in a trial was diagnosed with Wegener's granulomatosis, a form of vasculitis. The FDA placed the two investigational new-drug applications for Heplisa on clinical hold in March. Dynavax shares lost 2 cents, or 1.7%, to $1.13, while Merck participated with the broader market rally, gaining 80 cents, or 2.8%, to $31.93.

Eli Lilly (LLY Quote - Cramer on LLY - Stock Picks) spent the entire day in the green, ending the session with a 3.4% gain at $45.42. The drugmaker's board appointed its CEO, John Lechleiter, to also serve as chairman of the board. When he assumes the chairmanship on Jan. 1, 2009, Lechleiter will succeed outgoing chairman Sidney Taurel, who is retiring on Dec. 31. Lechleiter, who originally started at Lilly in 1979 as a chemist, was named CEO in April.

Vertex Pharmaceuticals (VRTX Quote - Cramer on VRTX - Stock Picks) staged a comeback on the late-day rally in equities. Shares of the drug stock spent all day in the red, that is until the final hour of trading. The stock ended the day up 5% at $27.91.Vertex got off to a negative start after the company unveiled a stock sale plan before the opening bell. The company said it plans to sell 7.5 million common shares for $25.50 each and total proceeds of $191.3 million.