Updated from 2:50 p.m. EST

Shares of

Axonyx

( AXYX) were among the worst-performing health-related stocks Monday, falling 62.7% after the company said that its Alzheimer's drug did not show an improvement over a placebo in a phase III trial.

The experimental drug Phenserine didn't offer any statistically significant improvements vs. placebo in patients with mild to moderate Alzheimer's Disease. Although the company said "there were encouraging trends" with the drug, Axonyx said it would have to further analyze data "to optimize the trial designs in the currently planned program." Shares traded down $3.04 to $1.81.

InterMune

(ITMN)

fell 13.8% after the biotechnology company posted a fourth-quarter loss that was wider than expected and said that 2005 sales would fall below expectations. The company posted a loss of $21.8 million, or 68 cents a share, on sales of $39.5 million. Analysts polled by Thomson First Call were expecting a loss of 49 cents a share on sales of $37.4 million. A year ago the company posted a loss of $23.3 million, or 73 cents a share, on sales of $39.8 million. Looking ahead, InterMune forecast 2005 sales of $140 million to $160 million. Analysts, however, had been expecting sales of $163.7 million. InterMune pegged research and development costs at between $90 million and $100 million during 2005, representing a jump of 11% to 23% over 2004. SG&A is expected to climb 12% to 25%, or $85 million to $95 million, which is an increase of 12% to 25% over 2004. Shares traded down $1.62 to $10.12.

Shares of

Allergan

(AGN) - Get Report

fell 5.9% after the company posted solid fourth-quarter results but warned that first-quarter earnings would fall short of expectations. Excluding items, Allergan posted earnings of 86 cents a share during the latest quarter on sales of $556.2 million. Analysts were expecting earnings of 84 cents a share on sales of $528.2 million. Looking ahead, the company forecast first-quarter earnings of 66 cents to 67 cents a share, below analysts' expectations of 75 cents a share. Shares traded down $4.63 to $73.52.

Vicuron Pharmaceuticals

( MICU) rose 14.2% after the biopharmaceutical company said that its anidulafungin antifungal treatment, which is used to treat invasive candidiasis/candidemia, performed better than fluconazole, which is an active ingredient in

Pfizer's

(PFE) - Get Report

Diflucan antifungal treatment. Results showed that patients using anidulafungin had a global response success rate of 75.6% vs. 60.2% for patients treated with fluconazole. The company said it "is on track to file a new drug application for invasive candidiasis/candidemia in the third quarter of this year and to complete submission of an amendment to the esophageal candidiasis NDA in the second quarter." Shares traded up $2.20 to $17.73.

Other health care movers included

Aastrom Biosciences

(ASTM)

, down 20 cents to $3.36;

Merck

(MRK) - Get Report

, up 8 cents to $28.43;

Humana

(HUM) - Get Report

, down 50 cents to $34.15;

StemCells

(STEM)

, down 9 cents to $4.75;

Johnson & Johnson

(JNJ) - Get Report

, up 21 cents to $66.45;

Amgen

(AMGN) - Get Report

, up 40 cents to $63.15; and

Schering-Plough

( SGP), up 34 cents to $19.41.