Health Stocks in Motion

Express Scripts posts a strong quarter.
By Mark Martinez ,

Updated from 2:49 p.m.

Shares of

Express Scripts

(ESRX)

were among the best-performing health-related stocks Thursday, rising 9.4% after the pharmacy benefits management company posted fourth-quarter earnings that beat expectations and said first-quarter earnings would be better than expectations as well.

The company earned $80.9 million, or $1.07 a share, on sales of $3.94 billion. Analysts surveyed by Thomson First Call were expecting earnings of $1.06 a share on sales of $3.97 billion. A year ago the company earned $67.4 million, or 86 cents a share, on sales of $3.49 billion. Fourth-quarter results were aided by strong mail pharmacy sales and by higher generic utilization by consumers. Looking ahead, Express Scripts said that first-quarter earnings would not be below fourth-quarter results of $1.07 a share. Analysts are expecting 2005 earnings of $1.04 a share. Shares traded up $7.29 to $84.50.

Kos Pharmaceuticals

( KOSP) traded actively after the company posted strong fourth-quarter results that beat expectations. The company earned $53 million, or $1.15 a share, on sales of $150.7 million. Analysts were expecting earnings of $1.03 a share on sales of $142.8 million. A year ago the company earned $20.9 million, or 49 cents a share, on sales of $87.3 million. Strong Niaspan and Advicor product sales led to the strong year-over-year sales gains. Looking ahead, Kos forecast first-quarter earnings of 50 cents to 55 cents a share on flat sequential sales. Analysts are expecting earnings of 54 cents a share on sales of $135.1 million. Shares traded down 98 cents, or 2.7%, to $34.90 on volume of more than 2.5 million shares.

Shares of

Allos Therapeutics

( ALTH) rose 16.1% after the company posted a fourth-quarter loss that was narrower than expected. The biopharmaceutical company posted a loss of $5 million, or 16 cents a share. Analysts were expecting a larger loss of 22 cents a share. Separately, the company announced the sale of $50 million worth of exchangeable preferred stock to Warburg Pincus Private Equity VIII. The company plans to use the proceeds from the financing to fund ongoing research and development activities and for working capital purposes. Shares traded up 36 cents to $2.59.

Albany Molecular Research

(AMRI)

fell 18.1% after the company posted in-line fourth-quarter earnings but warned that first-quarter results would fall short of expectations. Excluding items, the drug discovery company earned $5.4 million, or 17 cents a share, on sales of $46.1 million. Analysts were expecting earnings of 17 cents a share on sales of $44.5 million. Looking ahead, Albany forecast first-quarter earnings of 10 cents to 12 cents a share on sales of $31 million to $34 million. Analysts had been expecting earnings of 15 cents a share on sales of $37.7 million.

The company said that, in the absence of guidance from

Sanofi-Aventis

(SNY) - Get Report

, it expects royalties from sales of Allegra to decline by as much as 10% during the first quarter compared to a year ago. If Sanofi-Aventis provides guidance on Allegra, Albany said that it could revise its first-quarter royalties outlook. Shares traded down $1.84 to $8.31.

Shares of

Bruker Biosciences

(BRKR) - Get Report

rose 5.4% after the company posted solid fourth-quarter sales that topped expectations. The provider of life science tools posted adjusted earnings of $900,000, or 1 cent a share, on sales of $85.8 million. Analysts were expecting earnings of 1 cent a share on sales of $74.1 million. A year ago the company earned $600,000, or 1 cent a share, on sales of $73.7 million. Looking ahead, Bruker said it expects to post breakeven earnings during the first quarter on sales of $68 million to $74 million. Analysts are expecting earnings of 2 cents a share on sales of $77.2 million. For all of 2005, the company expects sales of $313.1 million to $318.8 million on operating income that represents 3% to 5% of sales. Analysts are expecting 2005 earnings of 8 cents a share on sales of $301.8 million. Shares traded up 20 cents to $3.91.

Other health care movers included

Elan

(ELN)

, down $1.29 to $6.65;

Pfizer

(PFE) - Get Report

, down 2 cents to $26.59;

Biogen Idec

(BIIB) - Get Report

, down $1.55 to $39.14;

Aastrom Biosciences

(ASTM)

, down 28 cents to $2.81;

Amgen

(AMGN) - Get Report

, up 53 cents to $61.97;

Merck

(MRK) - Get Report

, down 2 cents to $31.58; and

StemCells

(STEM)

, down 45 cents to $4.53.

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