Health Stocks in Motion

Molina Healthcare falls on a loss outlook.
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Shares of

Molina Healthcare

(MOH) - Get Report

were among the worst-performing health-related stocks Thursday, falling 45% after the company said it would post a second-quarter loss and slashed its full-year outlook.

The managed care company now expects a second-quarter loss of 15 cents to 20 cents a share. Analysts polled by Thomson First Call had been expecting a profit of 56 cents a share. For all of 2005, the company now expects earnings of $20.6 million to $22.6 million, or 73 cents to 80 cents a share, well below its previous guidance of $2.40 to $2.45 a share. Analysts had been expecting earnings of $2.49 a share. Molina blamed the second-quarter shortfall on an increase in its medical care costs. Shares were recently trading down $20.87 to $25.13.

Guilford Pharmaceuticals

(GLFD)

rose 43% after the company agreed to be acquired by

MGI Pharma

(MOGN)

for $3.75 a share, or about $178 million in cash and stock. The deal, which consists of stock worth $2.625 a share and cash of $1.125 a share, represents a premium of 56% over Guilford's closing price of $2.41 on Wednesday. The stock portion of the deal is subject to a 15% collar, MGI said. The transaction is expected to close during the fourth quarter of 2005. Shares of Guilford were trading up $1.03 to $3.44 while MGI Pharma was trading down $1.65, or 6%, to $25.92.

Shares of

Adams Respiratory Therapeutics

(ARXT)

rose 52% Thursday after the company sold nearly 8 million shares of stock for $17 apiece in an initial public offering. Adams sold nearly 6 million shares in the offering while selling shareholders sold the rest. Adams, which expects net proceeds of about $88 million from the sale, will use the cash to build its Mucinex brand and fund product development. Adams had expected to sell shares in the IPO for $14 to $16 a share. Shares were recently trading up $8.85 to $25.85.

Atherogenics

(AGIX)

traded actively after the company posted second-quarter results. The company, which focuses on the treatment of chronic inflammatory diseases, reported a loss of $22.2 million, or 59 cents a share. Analysts were expecting a smaller loss of 56 cents a share. A year ago the company reported a loss of $16.5 million, or 45 cents a share. Shares were trading up 96 cents to $17.90 on volume of more than 1.4 million shares, or about two times average daily volume.

Shares of

Baxter International

(BAX) - Get Report

rose 2% after the company reported second-quarter earnings that were well above expectations. The medical products company posted earnings of $322 million, or 51 cents a share, on sales of $2.58 billion. Excluding items, the company would have earned $309 million, or 49 cents a share. Analysts were expecting earnings of 44 cents a share on sales of $2.45 billion. Looking ahead, Baxter forecast third-quarter earnings of 45 cents to 47 cents a share on organic sales growth of 2% to 4%. Analysts are expecting earnings of 47 cents a share on sales of $2.41 billion. Shares were trading up 78 cents to $39.36.

Other health-care volume movers included

Pfizer

(PFE) - Get Report

, down 33 cents to $26.73;

Amgen

(AMGN) - Get Report

, up 26 cents to $81.43;

UnitedHealth Group

(UNH) - Get Report

, down 31 cents to $49.44;

Schering-Plough

(SGP)

, down 15 cents to $20.05;

Dendreon

(DNDN)

, up 94 cents to $7.14;

Millennium Pharmaceuticals

(MLNM)

, down 14 cents to $10.45;

Johnson & Johnson

(JNJ) - Get Report

, down 81 cents to $64.15;

Elan

(ELN)

, down 12 cents to $7.88; and

Merck

(MRK) - Get Report

, down 87 cents to $30.98.