Updated from 2:24 p.m. EDT

Shares of

Emisphere Technologies

(EMIS)

were among the best-performing health and pharmaceutical stocks Thursday, rising 5% after the company announced a licensing agreement with

Roche

.

As part of the agreement, Roche will develop oral formulations of small-molecule compounds for use in bone-related diseases. Roche will pay Emisphere an upfront fee and future milestone payments of up to $18.5 million for each product developed using Emisphere's oral drug delivery technology. Roche will fund all preclinical, clinical, and manufacturing costs associated with the products. The licensing agreement follows successful pre-clinical studies and a human feasibility study using Emisphere's eligen delivery technology. Worldwide sales for drug products in this class are expected to be more than $5 billion during 2004, Emisphere said. Shares of Emisphere traded up 15 cents to $3.13.

Medtronic

(MDT) - Get Report

fell 7% after the company's second-quarter earnings and sales fell short of expectations. The medical device maker earned 44 cents a share on sales of $2.4 billion. Analysts surveyed by Thomson First Call were expecting earnings of 45 cents a share on sales of $2.46 billion. A year ago, the company earned 39 cents a share on sales of $2.16 billion. Looking ahead, Medtronic said third-quarter earnings would come in at the lower end of analysts' expectations of 45 cents to 48 cents a share on sales of $2.43 billion to $2.55 billion. Analysts, on average, are expecting earnings of 47 cents a share on sales of $2.5 billion. Shares of Medtronic traded down $3.67 to $48.65.

Shares of

PRA International

(PRAI)

rose 10.5% on the company's first day of trading as a public company. The clinical research company priced 6 million shares at $19 apiece, raising about $100 million in net proceeds. The company was expected to sell shares for between $16 and $18 a share. The company will use the proceeds to repay debt and to fund its growth in the clinical research industry. Credit Suisse First Boston and Bear Stearns led the underwriting syndicate. Shares traded up $2 to $21.

American Pharmaceutical Partners

(APPX)

rose 1.6% after the company named Alan Heller as president and chief executive. Heller most recently served as investment adviser on life science transactions to One Equity Partners, a private equity arm of

J.P. Morgan Chase

. Before that, he was president of global renal operations at Baxter Healthcare and president of G.D. Searle. Patrick Soon-Shiong, the company's chairman, said Heller's appointment is effective immediately. Soon-Shiong had held the position of CEO since founding the company in 1996. Soon-Shiong will now assume the position of executive chairman, where he will focus on strategic initiatives and proprietary next-generation injectable pharmaceutical products. Shares traded up 47 cents to $29.75.

Other health care volume movers included

Pfizer

(PFE) - Get Report

, down 22 cents to $27.77;

Merck

(MRK) - Get Report

, up 2 cents to $27.36;

Amgen

(AMGN) - Get Report

, up 21 cents to $60.08;

Teva Pharmaceuticals

(TEVA) - Get Report

, up 2 cents to $27.45;

StemCells

(STEM)

, up 19 cents to $2.59;

Johnson & Johnson

(JNJ) - Get Report

, up 22 cents to $61.12; and

Schering-Plough

(SGP)

, up 28 cents to $18.46.