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Health Stocks in Motion

Integra LifeSciences falls on a weak first quarter.

Updated from 2:54 p.m. EDT

Shares of

Integra LifeSciences

(IART) - Get Report

were among the worst-performing health-related stocks Monday, falling 3% after the company posted first-quarter earnings and sales that were below expectations and warned that second-quarter results would fall short of forecasts.

The medical-device maker posted adjusted earnings of $9 million, or 27 cents a share, on sales of $65.8 million. Analysts polled by Thomson First Call were expecting earnings of 30 cents a share on sales of $66.4 million. A year ago the company earned $7.4 million, or 23 cents a share, on sales of $52.4 million. Looking ahead, Integra forecast second-quarter earnings of 28 cents to 30 cents a share on sales of $66 million to $69 million. Analysts had been expecting earnings of 33 cents a share on sales of $71.8 million. Shares traded down $1.05 to $33.87.

King Pharmaceuticals

(KG)

rose modestly after the drugmaker posted first-quarter earnings and sales that were ahead of expectations. Excluding items, the company earned $76.1 million, or 31 cents a share, on sales of $368.6 million. Analysts were expecting earnings of 22 cents a share on sales of $348.2 million. A year ago the company earned $28.4 million, or 12 cents a share, on sales of $291.5 million. Results in the most recent period were led by strong branded pharmaceutical sales, which jumped 38% to $321.8 million. Shares traded up 1 cent to $9.

Shares of

NeoRx

(NERX)

fell 18.2% after the company said that it would cut its workforce by 40%, discontinue the clinical development of its skeletal targeted radiotherapy (STR) for multiple myeloma and cease operations at its facility in Denton, Texas, where STR was being manufactured. The restructuring will allow the company to focus its efforts on expediting the development of picoplatin, an agent designed to improve on the safety and efficacy of existing platinum therapeutics for cancer. The company estimates that it will take charges of about $2 million during 2005 and 2006 related to the restructuring. As of March 31, NeoRx had about $16.1 million in cash and investment securities.

The company's restructuring is just the latest in a string of bad news. In late March the company's auditor expressed doubt about NeoRx's ability to continue as a going concern. The company said that recurring losses, recurring negative cash flow and its accumulated deficit led to the going-concern qualification that was issued as part of the company's annual report. Shares traded down 12 cents to 54 cents.

Magellan Health Services

(MGLN) - Get Report

fell 3.3% after the company said that two of its shareholders plan to sell 4.25 million shares in a secondary offering. The selling shareholders include Magellan Holdings, an investment fund affiliated with Onex, and Morgan Noble, a co-investor with Magellan Holdings. Magellan Holdings, which is selling about 4.2 million shares in the secondary, currently owns about 8.49 million shares of Magellan Health Services' multiple and variable vote-restricted convertible stock, which translates into about 24% of Magellan's outstanding stock of both classes. Shares traded down $1.13 to $33.66.

Despite posting better-than-expected first-quarter results, shares of

Ventiv Health

(VTIV)

slid Monday. The provider of clinical services to the pharmaceutical industry posted adjusted earnings of $7.6 million, or 27 cents a share, on sales of $120.9 million. Analysts were expecting earnings of 22 cents a share on sales of $111.5 million. A year ago the company earned $5.1 million, or 20 cents a share, on sales of $70.7 million. Looking ahead, Ventiv now expects 2005 earnings of $1.06 to $1.12 a share on sales of $465 million to $480 million. Previously, Ventiv expected earnings of $1.03 to $1.09 a share on sales of $460 million to $475 million. Including a one-time tax adjustment from a higher long-term tax rate beginning during the first quarter, the company expects earnings of $1.09 to $1.15 a share. Analysts had been expecting earnings of $1.11 a share on sales of $481.5 million. Shares traded down $1.72, or 7.8%, to $20.34.

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Other health care volume movers included

Pfizer

(PFE) - Get Report

, up 36 cents to $27.97;

Amgen

(AMGN) - Get Report

, up $1.74 to $60.33;

Elan

(ELN)

, up 7 cents to $6.30;

Merck

(MRK) - Get Report

, up 4 cents to $34.20;

Johnson & Johnson

(JNJ) - Get Report

, down 4 cents to $68.17;

Schering-Plough

(SGP)

, down 14 cents to $20.48; and

Genentech

(DNA)

, up 28 cents to $73.40.