Shares of Kinetic Concepts ( KCI) were among the worst-performing health-related stocks Monday, falling 8% after the medical-equipment maker posted mixed fourth-quarter results and forecast 2006 sales below Wall Street's expectation. For the fourth quarter, the company earned $46.4 million, or 64 cents a share, on sales of $322 million. Analysts polled by Thomson First Call expected earnings of 61 cents a share and sales of $336.7 million. During the year-earlier quarter, the company earned $34.2 million, or 47 cents a share, on sales of $273.7 million. Looking ahead, Kinetic Concepts sees 2006 earnings of $190 million to $200 million, or $2.59 to $2.69 a share, on sales of $1.34 billion to $1.39 billion. The earnings forecast includes 10 cents to 11 cents a share in stock-based compensation expense. Analysts' estimates, which don't include the stock-based compensation costs, call for earnings of $2.66 a share and sales of $1.41 billion. Shares were trading down $3.05 to $39.65. Shares of Omnicare ( OCR) tumbled 10% after an analyst downgrade and a reported raid on some of the company's offices. According to a Cincinnati Enquirer report Friday, the Michigan attorney general's office said its agents led a raid into Omnicare's offices in Livonia, Mich., and other unspecified cities, but didn't disclose the reason for the searches. Stifel Nicolaus downgraded Omnicare to hold from buy, citing the report. In a statement Monday, Omnicare said it doesn't comment on or confirm government reviews or inquiries. Shares of Omnicare, a drug supplier to nursing homes, fell $5.62 to $49.43. Kensey Nash ( KNSY) fell 5% after the company posted mixed second-quarter results and offered soft guidance. For the quarter ended Dec. 31, the medical-device company reported a loss of $555,860, or 5 cents a share, on total sales of $13.6 million. Excluding one-time items and stock-based compensation costs, the company earned $1.4 million, or 12 cents a share. Analysts expected earnings of 10 cents a share on this basis, with sales of $14.2 million. During the year-earlier period, the company earned $3.3 million, or 27 cents a share, on sales of $15.2 million.
Looking ahead, Kensey Nash sees third-quarter earnings of 13 cents to 15 cents a share, or 19 cents to 21 cents a share before items. Net sales, meanwhile, are expected to be between $9 million and $9.5 million, while royalties are projected at $5.8 million to $6 million. Analysts project earnings of 23 cents a share on total sales, which includes net sales and royalties, of $17.2 million. Shares were down $1.34 to $24.94. Shares of Schering-Plough ( SGP) fell 2% after the drugmaker posted fourth-quarter results that fell below expectations. The company earned $104 million, or 7 cents a share, on sales of $2.32 billion. Analysts expected earnings of 8 cents a share and sales of $2.39 billion. During the year-earlier quarter, the company posted a loss of $856 million, or 58 cents a share, on sales of $2.18 billion. Last year's loss included a tax charge of $807 million, or 55 cents a share, related to the repatriation of foreign earnings. Shares were trading down 38 cents to $19.70. Shares of Misonix ( MSON) jumped 57% after the medical-device maker received Food and Drug Administration clearance to market and sell its Sonatherm 600 product in the U.S. The product is used for removing soft tissue lesions during surgical procedures. The product, which will first be launched in areas outside of the U.S., should be ready for the U.S. market around 2007 or 2008, the company said. Shares were trading up $2.61 to $7.17. CombinatoRx ( CRXX) gained 18% after the biopharmaceutical company's osteoarthritis drug showed positive results in a phase II clinical trial. CombinatoRx said the trial met its endpoint of reducing pain by a statistically significant amount when compared to a placebo. The drug was well tolerated and there were no serious adverse events reported, the company said. "We look forward to completing the secondary analyses, presenting the data in an appropriate medical forum, and finalizing our further development plans for this product candidate," the company said. Shares were up $1.89 to $12.50. Other health care volume movers included Pfizer ( PFE), up 9 cents to $26.08; Boston Scientific ( BSX), down 44 cents to $21.19; Johnson & Johnson ( JNJ), down 41 cents to $58.30; Amgen ( AMGN), up $1.26 to $72.57; NMT Medical ( NMTI), up $4.66 to $21.92; Genta ( GNTA), up 19 cents to $2.39; Nektar Therapeutics ( NKTR), down $1.04 to $19.71; Guidant ( GDT), down 79 cents to $72.93; Bristol-Myers Squibb ( BMY), down 12 cents to $22.87; Merck ( MRK), down 61 cents to $34.09; Teva Pharmaceutical Industries ( TEVA), up 76 cents to $42.06; and Elan ( ELN), up 7 cents to $14.62.