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.