Shares of Vanda Pharmaceuticals ( VNDA) rose 8.7% to $29.67 after the company said it priced an offering of 3.8 million shares at $27.29 a share.

After underwriting discounts, commissions and estimated offering expenses, proceeds are expected to be approximately $96.2 million. Abbott's ( ABT) stock was upgraded by analysts at UBS to a neutral rating from reduce after the health care giant agreed to sell its diagnostics business to GE ( GE) for about $8 billion.

Analyst Kenneth Weakley raised his price target on the stock to $53 from $43. Shares were trading 1.1% higher to $53.37 Friday morning.

Shares of CV Therapeutics ( CVTX) rose after Cantor Fitzgerald initiated coverage of the stock with a buy rating citing strong prescription trends.

Analyst George Zavoico sets a $32 price target on the stock and says CV Therapeutics will achieve profitability in 2009. Shares gained 3% to $14.31 Friday.

Shares of diagnostics company Celera ( CRA) jumped 8.6% to $15 Friday after the stock was upgraded to outperform from market perform by analysts at Piper Jaffray.

"Since emerging out from under the genomics business, Celera has established itself as one of the better positioned molecular diagnostics companies, in our opinion," wrote analyst William Quirk, who raised his target price on the stock to $16 from $14.

Among other health care winners Friday were Genentech ( DNA), up 1.7% to $89.06; Genzyme ( GENZ) 1% higher to $67.51; Watson Pharmaceuticals ( WPI), rising 2.4% to $26.36; Vernalis ( VNLS), gaining 6.5% to $2.80; and SIGA Technologies ( SIGA), whose shares jumped 11.1% to $3.79.

Among the losers were Gilead Sciences ( GILD), down 1% to $65.50; American Oriental Bioengineering ( AOB), falling 4% to $12.42; Inspire Pharmaceuticals ( ISPH), losing 4.4% to $6.92; CollaGenex Pharmaceuticals ( CGPI), down 2.4% to $14.50; and King Pharmaceuticals ( KG) off 1.3% to $17.28.

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