Shares of cancer drug developer

Celgene

(CELG) - Get Report

sank after the company said it expects to miss earnings and sales estimates in 2007.

The company expects to earn $1 a share for the year on $1.3 billion in sales in 2007, compared with estimates of $1.09 a share on $1.38 billion in sales. The stock fell 4.4% to $54.77 Tuesday.

Biotechnology company

Genzyme

( GENZ) sank despite posting solid results. The company said revenue grew 17% to $852 million in the fourth quarter. For 2007, revenue is expected to reach $3.6 billion to $3.8 billion, and earnings excluding certain items should be between $3.10 and $3.20 a share. Analysts were expecting Genzyme to earn $3.16 a share on sales of $3.62 billion. The stock fell 1.3% to $66.16.

Critical Therapeutics

(CRTX) - Get Report

shares gained 14.9% to $2.62 Tuesday after the company reported positive preliminary sales results for the fourth quarter thanks to higher sales of its asthma drug Zyflo as well as a recent price increase. The drugmaker expects to report $1.9 million to $2.1 million in sales of the drug.

Alnylam Pharmaceuticals

(ALNY) - Get Report

gained 7.7% to $21.98 after the company said it entered a licensing agreement with

Inex Pharmaceuticals

. Inex will receive an upfront payment of $8 million in cash or Alnylam stock, and $4 million in research and development funding over the next two years to help develop Alnylam drug-delivery systems.

Shares of specialty pharmaceutical company

Labopharm

( DDSS) rose 4.2% to $6.16 after the company said it launched its painkiller Tramadol in Italy and Spain and plans to market the drug in the U.K., France and Belgium early this year.

Among other health stocks rising Tuesday were

Schering-Plough

( SGP), up 2.4% to $23.98;

Wyeth

( WYE), 1.4% higher to $52.09;

Vertex Pharmaceuticals

(VRTX) - Get Report

, rising 2.6% to $34.41;

Myriad Genetics

(MYGN) - Get Report

, up 3.6% to $32.55;

Integrated Biopharma

(INB) - Get Report

, lifting 1.5% to $6.89; and

Catalyst Pharmaceutical Partners

(CPRX) - Get Report

, gaining 5.5% to $4.25.

Among the losers were

Novartis

(NVS) - Get Report

, down 1.1% to $57.57;

Rigel Pharmaceuticals

(RIGL) - Get Report

, off 1.2% to $11.54;

Allergan

(AGN) - Get Report

, falling 1.2% to $116.31; and

Sanofi-Aventis

(SNY) - Get Report

, down 1.2% to $44.59.