Updated from 1:35 p.m. EDT
was among the worst-performing drug and pharmaceutical stocks Monday, after the company said second-quarter earnings and sales would fall short of expectations.
Citing weak sales on women's health and general products, Watson said
it expects second-quarter sales of $400 million, below the $414 million that analysts polled by Thomson First Call were expecting. Earnings, meanwhile, are now expected to come in at 39 cents to 41 cents a share. Analysts had expected Watson to deliver earnings of 51 cents a share.
Separately, Watson also announced that it is refocusing its business strategy. As part of that strategy it is terminating its contract sales force agreement with Ventiv Health. Watson says that it expects annual pretax savings of about $80 million to $90 million, with most of the savings coming from the termination of the Ventiv agreement.
Shares of Watson Pharmaceuticals traded down $4.80, or 14.9%, to $27.49.
rose after the drugmaker and its partner
said they received
fast-track status by the Food and Drug Administration for their multiple sclerosis drug. The next step for the drug is formal acceptance of the application, which occurs 60 days after it's submitted. The FDA grants priority review to products it believes are potentially therapeutic advancements over existing therapies in the marketplace. Elan and Biogen Idec expect action within six months of the FDA receiving the application. Shares of Elan traded up 43 cents, or 1.8%, to $24.40. Shares of Biogen Idec traded up 33 cents, or 0.5%, to $62.70.
rose after the FDA lifted its hold on ocinaplon, the company's anti-anxiety candidate. The company must submit a revised protocol that includes more frequent liver enzyme testing. The FDA will allow the company, subject to the revised protocol submission, to proceed with a 28-day clinical trial. The FDA had originally placed the company's phase III trials of ocinaplon on hold in October 2003. Shares of DOV Pharmaceutical traded up $1.05, or 8.3%, to $13.71.
slumped after the company sold $21 million in exchangeable notes. Warburg Pincus and The Vertical Group purchased $15 million in notes, with the balance being purchased by two other institutions. The notes will be exchanged for about 6.85 million shares of Micro at $3.10 a share, subject to shareholder approval, sometime during the third quarter. Shares of Micro Therapeutics traded down 68 cents, or 13.8%, to $4.26.
slid after it announced an agreement to sell its Key Electronics unit. The company expects to net between $4 million and $5 million and does not expect to record a charge against earnings as a result of the transaction. ProxyMed expects to reinvest the proceeds into its health care-related businesses. Key Electronics had annual sales of about $10 million. Shares of ProxyMed traded down $1.23, or 6.7%, to $17.27.
Other health care volume movers included
, up 24 cents to $34.06;
, down 57 cents to $53.56;
Johnson & Johnson
, up 47 cents to $54.97;
, up 8 cents to $18.26; and
, down 35 cents to $54.15.