Shares of Usana Health Sciences ( USNA) fell Friday after one analyst took a more cautious stance on the stock. Despite a number of upcoming catalysts and positive long-term prospects, Ryan Beck analyst Mark Rupe downgraded the stock to market perform from outperform, maintaining his $52 price target. Shares were down 2.4% to $50.95. "Simply put, we would be more aggressive at lower levels," Rupe wrote in a research report. Shares of Eli Lilly ( LLY) and OSI Pharmaceuticals ( OSIP) were down slightly Friday. Earlier today, the companies entered a diabetes drug-licensing deal. In the agreement, OSI will receive an upfront fee of $25 million, up to $360 million in development and sales milestones and other payments, plus royalties on sales of any drugs brought to market. Lilly will gain exclusive rights to a new drug technology in OSI's type 2 diabetes and obesity portfolio. Shares of OSI were down 6 cents, or 0.2%, to $33.85 while Eli Lilly's shares were down 26 cents, or 0.5%, to $52.10. Genentech's ( DNA) shares dipped despite positive data. The biotech giant said it saw "encouraging results" from a trial involving its drug pertuzumab, for women with certain difficult-to-treat cancers. The study involved patients with ovarian, fallopian tube or primary peritoneal cancer, whose disease failed to respond to prior treatments. "We are encouraged by the results of this trial, and will continue to analyze the data to help determine next steps for the pertuzumab development program," said Hal Barron, Genentech's chief medical officer. Shares were 14 cents lower at $83.89.
Shares of biopharmaceutical company CombinatoRx ( CRXX) rose Friday after Rodman & Renshaw analyst Michael King initiated coverage of the stock with a market outperform rating. The company, which King called "an opportunity as big as all of medicine," uses its proprietary drug-discovery technology to identify existing drugs that can be used in new combinations for entirely different uses. "Given the company's robust $125 million cash position, the implied technology value of $122 million appears extremely attractive to us, given the near-bottomless pool of candidates upon which the company can draw," King wrote in a research report. He sets a 12-month price target of $13. Shares were trading 2% higher, at $8.37. Shares of health care company Chattem ( CHTT) gained 3.7% to $54.68 after the maker of over-the-counter drugs and supplements said it's entering the S&P SmallCap 600. The stock replaces Fidelity Bankshares at the close of trading Friday. Among other health stock winners Friday were Onyx Pharmaceuticals ( ONXX), gaining 4.6% to $11.48; StemCells ( STEM), rising 6.8% to $3.32; Bioprogress ( BPRG), up 2.6% to $14; Polydex Pharmaceuticals ( POLXF), jumping 13.3% to $7.49; and Par Pharmaceutical ( PRX), 1.4% higher to $23.64. Among the losers were Biovail ( BVF), off 1.3% to $21.25; Elan ( ELN), 1.3% lower to $13.89; Rigel Pharmaceuticals ( RIGL), falling 3.8% to $11.59; Nektar Therapeutics ( NKTR), down 2% to $14.56; and Cytori Therapeutics ( CYTX), sinking 11% to $5.25.