Team-ups launched some health stocks such as
( KYPH) higher, while earnings tugged at others Friday.
A $3.9 billion merger with
sent spinal treatment device company Kyphon soaring Friday. Medtronic will pay $71 each for Kyphon's outstanding shares. The deal, which prices Kyphon's stock at a 32% premium over its Thursday closing price, is expected to close in the first calendar quarter of 2008.
Kyphon rocketed $13.32, or 25%, to $67, while Medtronic edged down just 1 cent to $50.90.
, a biopharmaceutical company that was spun out of the research division of R.J. Reynolds Tobacco in 2000, climbed Friday on an alliance with
to develop and market drugs that target nicotinic receptors in the brain to treat pain and possibly other indications including Alzheimer's disease and obesity.
GlaxoSmithKline will pay Targacept $35 million up front, which includes a $15 million investment in the company's stock. In the future, Targacept could receive milestone payments for development and royalties on sales, creating the potential for a grand sum of $1.5 billion.
Targacept added $1.92, or 21%, to $10.92, and GlaxoSmithKline lost $1.28, or 2.5%, to $49.93.
Ending the week in the red,
( SEPR) took a 26% hit Friday after posting
quarterly earnings that came in below expectations. The company also reduced full-year earnings guidance to a range of $1.28 to $1.58 a share, from its previous forecasts of $2.11 in April and $2.25 in January.
Sepracor gave up $9.86, to $28.41. It's a component of the Nasdaq Biotechnology index, which fell 7.51, or 0.98, to 800.65.
( AGIX), which focuses on drugs to treat chronic inflammatory diseases, fell 12 cents, or 6.3%, to $1.80.
On Thursday the company reported second-quarter revenue of $30.3 million, compared with $6.3 million in the same period in 2006, and a net loss of $6.1 million, or 16 cents a share, compared with a net loss of $13.1 million, or 33 cents a share, in the year-ago quarter. AtheroGenics updated its full-year 2007 earnings guidance to a loss in the range of $1.35 to $1.45 a share.
Similarly, biopharmaceutical company
fell Friday after reporting earnings Thursday. Net loss was $45.1 million, compared with $41.5 million for the same period of 2006 -- a 75-cent-per-share loss compared with a loss of 70 cents a share.
Revenue was $5.3 million vs. $4.8 million for the same period of 2006, due to higher amortization of upfront and milestone payments from the company's partnerships with GlaxoSmithKline and Astellas. Theravance fell $1.84, or 6.3%, to $27.51.