Wednesday's Early Winners & Losers

Vascular Solutions jumps after its hemostat product gains approval for a new use.
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Vascular Solutions

(VASC)

surged more than 20% in after-hours trading Tuesday after the medical-supplies maker announced that the FDA had approved its D-Stat Flowable hemostat product for a new use.

For patients implanted with pulse generators -- pacemakers and ICDs, or implantable cardioverter defibrillators -- D-Stat, a thick suspension of collagen, thrombin and diluent, can coat the pocket created in the prepectoral area (between the fat tissue and the breast muscle) where the device is embedded. This pocket, especially under the influence of anticoagulants to prevent blood clots, tends to bleed for significant lengths of time following implantation; this, in turn, leads to a pocket hematoma (or a clotty collection of blood) that can eventually cause infection. The coating, says Minneapolis-based Vascular, helps to cut down on hematoma formation. D-Stat was previously approved for topical applications in 2002. Shares were trading up $1.56 to $9.12.

Bisys Group

(BSG)

, a New Jersey-based fund administrator that recently settled kickback charges with the

Securities and Exchange Commission

, rose on reports that it is now considering a management buyout. A few months ago, mulling the possibility of selling the company, Bisys hired a Bear Stearns analyst to evaluate that option. A buyout now appears to be the more likely course of action, according to those familiar with the discussions. Shares were up 39 cents, or 3.1%, to $13.01.

Shares of

Telkonet

(TKO)

amassed further gains following its Tuesday announcement that the Telkonet iWire System, its power-line networking platform, had been approved for use by the Department of Homeland Security's Transportation Security Administration in collaboration with the U.S. Army. The system, says the Germantown, Md.-based company, is scheduled for deployment in some airports starting in January. Shares were up 5 cents, or 1.7%, to $2.95.

UnitedHealth Group

(UNH) - Get Report

dropped after it announced that the SEC had begun a formal investigation of its stock option grant practices. In October, the company's internal review found that many options had probably been backdated, prompting former CEO William McGuire to resign. The Minnesota-based insurer received an official SEC notification letter Dec. 19. Shares were down 46 cents, or 0.9%, to $52.77.

BioVeris

(BIOV)

jumped on news that it had won nonexclusive rights to

Baxter Healthcare's

(BAX) - Get Report

Neisseria meningitidis group C vaccine. The Gaithersburg, Md.-based company said it will use the vaccine in combination with other vaccine candidates for the prevention of meningitis and sepsis -- two related, lethal diseases -- which, it says, will reduce the number of injections that a child would receive during a single doctor visit.

BioVeris has paid an unspecified upfront fee, and the license will entail royalties on future product sales, with a possibility of additional milestone payments in connection with clinical trials and regulatory approvals. BioVeris shares were up 53 cents, or 4%, to $13.68. Baxter shares were unchanged.