Teva Pharmaceutical Industries Ltd. said Tuesday a U.S. court ruled against it in an ongoing patent challenge over the anti-psychotic drug Seroquel and the Israel-based drug developer plans to appeal the decision.

Shares of OSI Pharmaceuticals Inc. rose Friday after a Thomas Weisel Partners analysts initiated coverage of the biopharmaceutical company with an "Overweight" rating, citing accelerating sales of the cancer drug Tarceva.

Pharmaceutical stocks may have ended Wednesday's trading session mostly in the green, but stocks are still down substantially year to date, and a JPMorgan analyst cautioned that big pharma is no longer a strong defensive choice in a weak economy.

Two large pharmaceutical companies said Thursday they will appeal a jury verdict ordering them to pay more than $114 million for overcharging the state's Medicaid program for prescription drugs.

Shares in AstraZeneca PLC jumped almost 5 percent Wednesday after the drug maker won a key patent battle in the United States over Seroquel, its anti-psychotic drug and second-best seller.

AstraZeneca nudged up its forecast for 2008 earnings on Thursday, but sales of key products in the first quarter were weaker than hoped for, knocking its shares.

All three major indexes finished slightly higher Tuesday, led by energy and bank stocks, as investors processed some not-horrible earnings results. Airline stocks skidded amid concerns about fuel prices and viability.

Stocks traded mixed Tuesday as not-horrible earnings failed to quell market jitters about earnings.

Stocks opened higher Tuesday after a tame core inflation reading, a better-than-expected manufacturing report and news of a Delta-Northwest deal.

AstraZeneca has settled U.S. patent litigation against India's Ranbaxy Laboratories over its top-selling drug, ulcer pill Nexium, securing future sales and sending its shares soaring.

For years, the nation's largest drug and medical device manufacturers have courted doctors with consulting fees, free trips to exotic locales and sponsoring the educational conferences that physicians attend.

AstraZeneca is stopping a clinical trial of its blockbuster cholesterol fighter Crestor early because of the clear benefits of the medicine compared to placebo, the company said on Monday.

AstraZeneca gave a cautious outlook for the year ahead on Thursday after meeting analyst forecasts with a 3 percent fall in 2007 earnings, and said market conditions remained challenging.

U.S. regulators said  they would review whether to take action over the popular cholesterol drug Vytorin after a study showed it was no better than a generic in preventing the build-up of fatty plaque.