Updated from 2:41 p.m.

Shares of

Possis Medical

( POSS) were among the worst-performing health-related stocks Wednesday, falling 12.6% after the company posted second-quarter earnings that fell below expectations and warned that third-quarter earnings would be lower than expected.

The medical-device maker earned $1.54 million, or 9 cents a share, on sales of $16.17 million. Analysts polled by Thomson First Call were expecting earnings of 10 cents a share on sales of $16.33 million. Sales of the company's AngioJet product came in at $15.6 million during the quarter compared with year-ago sales of $17 million. Possis said that AngioJet sales were hurt by the continuing impact from the results of the AiMI postmarketing study. Looking ahead, the company expects third-quarter earnings of 4 cents to 7 cents a share, below the 12 cents a share that analysts had been expecting. Shares, which have fallen about 60% during the past year, traded down $1.39 to $9.68.

Accredo Health

( ACDO) rose 39.3% after the drug distributor agreed to be acquired by

Medco Health Solutions

(MHS)

for about $2.2 billion in stock and cash. The deal calls for Accredo shareholders to receive $22 a share in cash and 0.49107 shares of Medco stock, for a total value of about $43.33 a share. The price represents a premium of 43% based on Tuesday's closing prices. Excluding transaction-related costs and adjustments, the deal, which should be completed in mid-2005, is expected to be accretive to Medco's 2006 earnings and result in operating synergies of more than $40 million in 2006. Shares of Accredo traded up $11.87 to $42.11, while shares of Medco traded down 29 cents to $43.14.

Shares of

LCA-Vision

(LCAV)

rose 11.5% after the company posted fourth-quarter earnings and sales that were better than expected. The laser vision correction services company posted earnings of $4.9 million, or 23 cents a share, on sales of $32.7 million. Analysts were expecting earnings of 14 cents a share on sales of $30.4 million. A year ago the company earned $2.2 million, or 12 cents a share, on sales of $20.8 million. Looking ahead, LCA-Vision now expects 2005 earnings of $1 to $1.05 a share, up from previous guidance of 97 cents to $1.02 a share. Analysts had been expecting earnings of $1.02 a share on sales of $170.4 million. Shares traded up $3.09 to $30.03.

Matria Healthcare

(MATR) - Get Report

rose 1.5% after the company posted fourth-quarter earnings that beat expectations by a penny. The disease management company posted earnings of $4.2 million, or 23 cents a share, on sales of $79.2 million. Analysts were expecting earnings of 22 cents a share on sales of $77.7 million. Looking ahead, Matria reaffirmed its first-quarter earnings guidance of 20 cents to 22 cents a share on sales of $77 million to $79 million. Analysts are expecting earnings of 21 cents a share on sales of $78.6 million. Shares traded up 42 cents to $28.90.

Shares of

SciClone Pharmaceuticals

(SCLN)

rose 9.5% after the company posted a narrower-than-expected fourth-quarter loss. The biopharmaceutical company posted a loss of $2.36 million, or 5 cents a share, on total sales of $6.1 million. Analysts were expecting a loss of 12 cents a share on sales of $5.68 million. Looking ahead, SciClone forecast a 2005 loss of 31 cents to 36 cents a share. The one-analyst estimate called for a loss of 45 cents a share. Shares traded up 28 cents to $3.23.

Other health care movers included

Pfizer

(PFE) - Get Report

, down 28 cents to $26.31;

Merck

(MRK) - Get Report

, up 55 cents to $31.76;

Amgen

(AMGN) - Get Report

, down 30 cents to $61.34;

Bristol-Myers Squibb

(BMY) - Get Report

, up 51 cents to $24.87;

Teva Pharmaceutical Industries

(TEVA) - Get Report

, up 7 cents to $27.57; and

Schering-Plough

( SGP), up 32 cents to $19.22.