Health Stock Winners & Losers: Lilly, Glaxo

Updated from 1:13 p.m. EDT

Eli Lilly's (LLY Quote) profit beat and GlaxoSmithKline's (GSK Quote) move to buy Stiefel Laboratories weren't enough to lift widely held health care stocks above the slumping broader market on Monday.

Eli Lilly reported a 23% rise in first-quarter profit driven by flat costs and healthy sales, but it saw flat or decreased sales for two of its top-selling drugs. Zyprexa had flat sales of $1.12 billion, and cancer drug Gemzar saw a 14% drop in sales to $367.8 million, according to The Associated Press. Lilly backed full-year profit guidance of between $4 and $4.25, in line with analysts' estimate of $4.14 per share. Eli Lilly's stock suffered Monday, recently falling 1.5% to $33.25.

Meanwhile, GlaxoSmithKline shares were falling after the U.K. health powerhouse announced it would buy privately held dermatological products maker Stiefel Laboratories for $2.9 billion in cash. The deal is expected to be dilutive to shares in 2009, and 1% to 2% accretive next year. Stiefel, which is partly owned by Blackstone Group(BX Quote), reportedly had drawn interest from Johnson & Johnson and Novartis(NVS Quote) earlier in the year. Glaxo shares were recently falling 1.7% to $30.09.

Elsewhere:

Johnson & Johnson(JNJ Quote) shares were down 0.9% to $52.57.

Pfizer(PFE Quote) shares were down 3.7% to $13.64.

Bristol-Myers Squibb(BMY Quote) was falling 2.1% to $20.23.

Merck(MRK Quote) shares were down 1.4% to $25.37.

Procter & Gamble(PG Quote), which on Monday received an upgrade to Buy from Neutral at Sun Trust Robinson Humphrey, was falling 1% to $51.17.

Novo Nordisk(NVO Quote) bucked the trend, with shares recently rising 0.5% to $44.43.