Shares of Pharmacopeia ( PCOP) were among the best-performing health-related stocks Thursday, surging 19% after the company announced a drug-discovery and development alliance with GlaxoSmithKline ( GSK). Under the terms of the agreement, which calls for the development and commercialization of novel drugs in a broad array of areas, Pharmacopeia will receive a $15 million cash payment from GlaxoSmithKline. Additionally, the company will be eligible to receive milestone payments of up to $83 million. Pharmacopeia also will be able to receive double-digit royalty payments, which are tied to product sales. At the beginning of the alliance, GlaxoSmithKline will receive warrants to buy Pharmacopeia stock at a 25% premium to Pharmacopeia's trailing 30-day closing price average. Shares of Pharmacopeia were recently trading up 91 cents to $5.73. Arrow International ( ARRO) shares fell 7% after the medical-device company's second-quarter results and third-quarter earnings projection missed Wall Street's expectation. For the quarter ended Feb. 28, the company earned $12.6 million, or 28 cents a share, on revenue of $116.5 million. Analysts polled by Thomson First Call expected earnings of 29 cents a share and revenue of $117.5 million. During the year-earlier quarter the company earned $5.3 million, or 12 cents a share, on revenue of $109.2 million. For the third quarter, Arrow predicts earnings of 33 cents to 35 cents a share, with revenue of $122 million to $126 million. Analysts, on average, project earnings of 36 cents a share and revenue of $123 million. Arrow shares were down $2.25 to $30.85. Shares of ViroPharma ( VPHM) rose 9% after the company announced positive phase-II results from its clinical study of maribavir, an oral antiviral drug candidate for bone marrow-transplant patients. The drug is being tested to inhibit the reactivation of a type of infection, cytomegalovirus, in the patients. "We could not have hoped for better results, as these data show that treatment with maribavir dramatically reduces the incidence of CMV reactivation in these very sick patients," the company said. "The only cases of CMV disease in this trial occurred in the placebo group -- there were no cases of CMV disease in subjects who received maribavir," ViroPharma said. The company will now move ahead with plans for a phase-III trial. Shares were trading up $1.06 to $12.75.