Shares of King Pharmaceuticals ( KG) were among the worst-performing health-related stocks Thursday, falling 8% after the drugmaker laid out plans to sell some $400 million of convertible senior notes due 2026.

King said that it would also grant purchasers an over-allotment option to buy an additional $60 million of notes. King plans to use proceeds from the offering to repurchase or redeem its 2021 convertible debentures, which have $345 million outstanding, and for general corporate needs. Shares were trading down $1.47 to $17.56.

Biovail ( BVF) rose 3% after the drugmaker posted better-than-expected fourth-quarter results and issued 2006 guidance that came in ahead of expectations. The company earned $119.7 million, or 75 cents a share, on revenue of $287.6 million. Results included a write-down of $2.7 million, or 2 cents a share. Analysts expected earnings of 74 cents a share and revenue of $265.7 million. During the year-earlier quarter, the company earned $46 million, or 29 cents a share, on revenue of $275.4 million.

Looking ahead, Biovail sees 2006 earnings of $2.30 to $2.40 a share, including 10 cents a share in stock-based compensation costs. The company predicts revenue of $990 million to $1.07 billion. Analysts project earnings of $2.12 a share, with revenue of $946.8 million. Shares were up 79 cents to $26.55.

Shares of Taro Pharmaceutical Industries ( TARO) rose 1% after the Food and Drug Administration tentatively approved the drugmaker's terbinafine cream. The cream, which is the generic version of Novartis' ( NVS) Lamisil cream, is used to cure athlete's foot, jock itch and ringworm. Shares were trading up 15 cents to $13.69.

CombinatoRx ( CRXX) fell 2% after the biopharmaceutical company announced a $48 million private placement. The company agreed to sell 4.68 million shares of stock for $10.25 apiece, which represents a discount of roughly 8% to Wednesday's closing price of $11.10. The transaction is expected to close on or about March 24. Shares traded at $10.93, down 17 cents.

Shares of Ciphergen Biosystems ( CIPH) fell 6% after the company announced the resignation of its chief financial officer. The company said Matthew Hogan will now serve as a consultant to the company for up to six months. Hogan will continue to receive his current rate of pay while serving as a consultant, the company said. Daniel Caserza, meanwhile, will serve as interim CFO until the company finds a full-time replacement. The company, which announced the resignation in a Securities and Exchange Commission filing, did not offer a reason for Hogan's resignation. Shares were trading down 11 cents to $1.64.

Other health care volume movers included Generex Biotech ( GNBT), up 28 cents to $3.50; Pfizer ( PFE), down 27 cents to $26.13; Bristol-Myers Squibb ( BMY), up 26 cents to $25.50; Boston Scientific ( BSX), up 10 cents to $23.57; Novavax ( NVAX), down 26 cents to $7.25; Elan ( ELN), down 9 cents to $13.71; Nabi Pharmaceuticals ( NABI), down 21 cents to $5.35; ViroPharma ( VPHM), unchanged at $10.88; Johnson & Johnson ( JNJ), down 30 cents to $60.70; Amgen ( AMGN), down 4 cents to $72.39; Merck ( MRK), up 2 cents to $36.25; and Schering-Plough ( SGP), down 8 cents to $19.27.

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