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Health Stocks in Motion

Corixa rises on Glaxo buyout.

Updated from 3:00 p.m. EDT

Shares of



were among the best-performing health-related stocks Monday, rising 40.1% after the company agreed to be acquired by



for about $300 million in cash.

Corixa shareholders will receive $4.40 a share, which represents a 42% premium over Friday's closing price of $3.09. GlaxoSmithKline already owned 8% of the company prior to the acquisition. The transaction, pending regulatory clearance and certain other conditions, is scheduled to close during the third quarter of 2005. Shares of Corixa traded up $1.24 to $4.33; GlaxoSmithKline traded down 30 cents to $50.25.

Cell Therapeutics


fell 3.1% after the company said that two phase III studies of Xyotax demonstrated equivalent survival rates in patients compared with patients taking existing treatments already on the market. The non-small-cell lung cancer treatment did demonstrate significant reductions in serious side effects, but the trials, known as Stellar 2 and Stellar 4, missed their primary endpoint of superior overall survival. The equivalent survival rates notwithstanding, the company plans to continue its dialogue and work with the Food and Drug Administration so that it can get Xyotax registered, it said.

Separately, the company posted first-quarter results that fell short of expectations. The company posted a loss of $39.1 million, or 62 cents a share, on sales of $6.1 million. Analysts polled by Thomson First Call were expecting a smaller loss of 53 cents a share on sales of $7.6 million. Shares traded down 12 cents to $3.73.

Shares of



fell 6.1% after the company posted a wider first-quarter loss compared with a year ago. The company posted a loss of $3.4 million, or 6 cents a share, on sales of $35,000. A year ago the company posted a loss of $2.8 million, or 7 cents a share, on sales of $93,000. StemCells attributed the wider year-over-year loss to costs associated with Sarbanes-Oxley compliance, costs related to an increase in head count and recruiting activities, and to an increase in the company's estimated reserve for the exit cost obligation related to its former headquarters in Rhode Island. Shares traded down 17 cents to $2.63.

Accredo Health


fell modestly after the company posted mixed third-quarter results. The drug distributor posted earnings of $20.2 million, or 40 cents a share, on sales of $517.1 million. Excluding charges related to the company's impending acquisition by Medco, the company earned 42 cents a share. Analysts were expecting earnings of 43 cents a share on sales of $507 million. A year ago the company earned $21.1 million, or 43 cents a share, on sales of $409.3 million. In February, Accredo agreed to be acquired by Medco for about $2.2 billion in stock and cash. The deal is expected to close in mid-2005. Shares of Accredo traded down 3 cents to $45.27.

Other health care volume movers included



, up $1.20 to $6.71;



, up 24 cents to $27.41;

Amylin Pharmaceuticals


, down 24 cents to $16.76;



, up 10 cents to $34;



, up 53 cents to $58.74;

Martek Biosciences


, up 3 cents to $38.30;



, up 7 cents to $20.94;

Johnson & Johnson


, up 15 cents to $68.78;



, down 66 cents to $70.28; and

Gilead Sciences


, up 69 cents to $37.80.