Health Winners & Losers: Cardica

Health stocks fell Tuesday, but not quite so much as the broader markets.

The Nasdaq and Amex biotechnology indices were down 1.2% and 1.3%, respectively.

Bucking the trend, health stock

Cardica

(CRDC)

got approval for its PAS-Port system for use in cardiac bypass surgery. Shares surged 25.8% to $10.05.

Biodel

(BIOD)

shares continued to fall for a second day on late-stage study results on its diabetes drug Viaject. The data varied considerably in one of the study sites. Shares were off by 13% to $5.

Meanwhile, generic drugmaker

Mylan

(MYL) - Get Report

said Monday after the market's close that it will retain its specialty drug business

Dey LP

following a strategic review, but will relocate its commercial operations to the East Coast from Napa, Calif. Mylan reaffirmed its adjusted earnings outlook for the next three years.

In a separate announcement, Mylan said it will offer $400 million in notes, due 2015, to institutional investors through a private offering to qualified buyers. The company said it will use the proceeds to pay down its credit security. Shares were off by 10.6% at $11.10.

Merck

(MRK) - Get Report

said Tuesday that a three-judge panel of the 3rd Circuit Court of Appeals voted 2-1 to reinstate a consolidated securities class action suit. The suit was originally brought by investors in connection with disclosures regarding Vioxx, but had been dismissed by a federal district court in April 2007.

Merck's shares were down by 3.2% to $34.34.

Some of Merck's pharma peers were hit harder.

King Pharmaceutical's

(KG)

shares gave up 5.4%, to $11.02. And

Schering-Plough

(SGP)

fell 5.1% to $18.63.