Updated from 3:12 p.m.

Shares of

StemCells

(STEM)

were among the worst-performing health and pharmaceutical stocks Tuesday, falling 22.5% after the company posted third-quarter results and announced it would sell $22.5 million worth of stock.

The biotechnology company posted a loss of 8 cents a share on sales of $5,000. A year ago the company lost 7 cents a share on sales of $33,000. The company said that it is planning to file its first investigational new drug filing during the first quarter of 2005.

Separately, StemCells announced that it would sell 7.5 million shares of stock at $3 apiece, resulting in about $22.5 million in proceeds. The transaction is expected to be consummated in the next few days. The $3 price represents a 27% discount to Monday's closing price of $4.09. Shares traded down 92 cents to $3.17.

DaVita

(DVA) - Get Report

fell 8.9% after the company announced that it received a subpoena from the U.S. Department of Justice. The subpoena calls for the production of documents related to the operations of DaVita and its subsidiaries, and also calls for the production of documents related to the company's testing for parathyroid hormone levels and to products relating to vitamin D therapies. DaVita believes the subpoena was issued in connection with a joint civil and criminal investigation. Shares of DaVita traded down $2.86 to $29.40.

Shares of

LCA Vision

(LCAV)

rose 22.9% after the company posted third-quarter earnings and sales above expectations. The vision correction services company earned 26 cents a share on sales of $31.2 million. Analysts were expecting earnings of 21 cents a share on sales of $29.9 million. A year ago the company earned 14 cents a share on sales of $20.5 million. Shares traded up $5.41 to $29.

WellPoint Health Networks

(WLP)

rose 5.3% after the company posted third-quarter earnings that beat expectations and raised full-year sales guidance. The managed care company earned $1.97 a share on sales of $5.85 billion. Analysts were expecting earnings of $1.91 a share on sales of $5.88 billion. Looking ahead, WellPoint forecast full-year earnings of $7.60 to $7.65 a share, up from previous guidance of $7.50 to $7.55 a share. Analysts are expecting earnings of $7.57 a share. Shares traded up $4.67 to $92.90.

Other health care volume movers included

Pfizer

(PFE) - Get Report

, up 55 cents to $28.33;

Merck

(MRK) - Get Report

, up 17 cents to $30.66;

Amgen

(AMGN) - Get Report

, up $1.73 to $54.92;

Aastrom Biosciences

(ASTM)

, down 1 cent to $1.43;

Genentech

( DNA), down $1.13 to $42.87; and

Schering-Plough

( SGP), up 13 cents to $17.43.