Updated from 2:50 p.m. EDT

Drug trial news, partnership deals and a variety of updates kicked off the week in the health stocks Monday.

Shares of small-cap

Sonus Pharmaceuticals

( SNUS) demonstrated the most dramatic change Monday, plummeting $3.65, or 83.9%, to 70 cents, after announcing that a

phase III trial on Tocosol paclitaxel in breast cancer patients failed.

Array BioPharma

(ARRY) - Get Report

and

Celgene

(CELG) - Get Report

said Monday that they will collaborate on novel therapeutics in cancer and inflammation -- in a smaller deal than some investors had expected for Array, which previously said it planned to enter one collaboration this year.

Array is responsible for all discovery and development through phase I or phase IIa, at which point Celgene can receive worldwide rights (with exception to limited co-promotional rights in the U.S.) for drugs developed in two of four therapeutic programs. As part of the agreement, Array will receive a $40 million upfront payment, and for each drug selected by Celgene the company is eligible for up to $500 million tied to development, regulatory and commercial milestones as well as royalties on net sales.

Array closed down 70 cents, or 5.6%, at $11.85, and Celgene closed up $1.57, or 2.2%, at $72.20.

Meanwhile,

Bristol-Myers Squibb

(BMY) - Get Report

said Monday it will buy Adnexus Therapeutics for $430 million in an all-cash transaction. Privately held Adnexus, which had previously filed plans for an IPO, will become a Bristol-Myers Squibb subsidiary. The deal brings Bristol-Myers a phase I oncology biologic, Angiocept.

Bristol-Myers will acquire all of Adnexus' issued and outstanding shares of capital stock and stock equivalents with a net purchase price of $415 million after deducting Adnexus' net cash balance at closing. It may pay up to $75 million more related to development and regulatory milestones. Bristol shares closed down 0.7% at $28.79.

Ariad

(ARIA)

said it initiated its phase III "Succeed" trial for oral deforolimus in patients with metastatic soft-tissue and bone sarcomas. The 650-person pivotal trial will assess progression-free survival (PFS) as the primary endpoint and overall survival as a secondary endpoint in patients with metastatic sarcomas following a favorable response to chemotherapy. Shares closed up 11 cents, or 2.3%, at $4.99.

In other news,

The Medicines Co.

(MDCO) - Get Report

said the Food and Drug Administration accepted its supplemental new-drug application (sNDA) for a modified dosing regimen of Angiomax to treat acute coronary syndromes (ACS), specifically in patients with unstable angina or non-segment elevation myocardial infarction (NSTEMI). Shares were down earlier in the day but closed up 10 cents, or 0.6%, to $17.11.

Elsewhere,

Savient

(SVNT)

climbed 86 cents, or 6.1%, at $14.95, after the company filed a universal shelf registration statement with the

Securities and Exchange Commission

that would allow it to sell up to $200 million of its common stock, debt securities, preferred stock and warrants.

The company said it will use the proceeds for general corporate purposes, including research and development expenses, clinical trials, product supply and for licensing and acquisitions of, or investment in, companies, technology, products or assets.

Myriad Genetics

(MYGN) - Get Report

tacked on $3.13, or 6.8%, to $49.50 after Banc of America Securities analyst William T. Ho raised his price target to $62 from $47, saying he believes the stock continues to be undervalued ahead of phase III data in Flurizan for Alzheimer's disease.