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Health Winners & Losers: Gilead

Gilead sinks on an FDA rejection.
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Health-care stocks generally suffered the same fate Wednesday as the broader stock market, trading deeply in the red.

Gilead Sciences

(GILD) - Get Free Report

sank on news the Food and Drug Administration refused to approve the biotech company's experimental cystic fibrosis drug,

aztreonam lysine

. The FDA informed Gilead in a letter that the inhaled antibiotic couldn't yet be approved and an additional clinical study would be needed.

Goldman Sachs, which rates Gilead a buy, trimmed its price target for the stock to $58 from $59 following the FDA letter, which Goldman says reduces 2008 and 2009 sales expectations for the drug. Gilead shares sank 5.6% to $47.04.

Gilead is a component of the Amex biotechnology index, which lost 4.7% to 772.22. The Amex pharmaceutical index, meanwhile, fell 2.6% to 289.80.

One of the few winners Wednesday was


(MYL) - Get Free Report

, which won FDA approval for its abbreviated new-drug application (ANDA) for Risperidone. The drug, a treatment for schizophrenia and bipolar disorder, is a generic version of Risperdal. That brand-name drug, a product of

Johnson & Johsnon's

(JNJ) - Get Free Report

Janssen unit, generated annual sales of about $2.67 billion in the U.S., Mylan said. Mylan shares rose 1.6% to $11.02, while J&J shares edged down 0.4% at $69.54.

Amgen, which rose Tuesday on positive study data on bone drug denosumab, gave back that 6% gain on Wednesday, losing 6.5% to $61.60.

In M&A news, Canada-based



agreed to pay $100 million to buy Prestwick Pharmaceuticals, a privately held U.S. company that holds the Canadian and U.S. licensing rights to Xenazine. The FDA recently approved the drug, offering it orphan drug status, as a treatment of chorea associated with Huntington's disease. That designation gives the drug seven years of market exclusivity in the U.S. Canaccord Adams initiated coverage of Biovail with a buy rating Wednesday. The stock, however, sank 9% to $9.30.

In other analyst actions, Caris & Co. upgraded



from average to above average, and Roth Capital upgraded


(ALKS) - Get Free Report

from hold to buy. The upgrades provided no boost, however; Wyeth sank 2.8% to $37.80, and Alkermes fell 6.4% to $11.97.

This article was written by a staff member of