ALSO NOTED: Avandia picks up European warnings; Thalidomide may reappear on market;

European drug watchdogs placed restrictions on GlaxoSmithKline's Avandia, and the company said it would revise the diabetes drug's European labeling to warn of a possible increased risk of heart attack. Report

The banned drug thalidomide, which caused thousands of birth defects until it was withdrawn almost 50 years ago, may be resurrected to treat bone marrow cancer, on the condition that it be strictly controlled. Report

Bayer is withdrawing the liquid formulation of Leukine because of reports that it is causing patients to faint; the reaction hasn't been seen in lyophilized Leukine, which will remain on the market. Release

Women who use birth control pills are protected from ovarian cancer for decades after they stop taking it, a new study in The Lancet shows. Report

MiddleBrook Pharmaceuticals' stock surged yesterday after the FDA approved its Moxatag drug to treat strep throat in adults and kids 12 years and older. Report

Amgen's sales fell 2 percent in the fourth quarter to $3.74 billion, but the company managed to eke out a $835 million profit for the period, an increase of 1 percent. Report

Celgene shares fell after a European advisory committee recommended against expanding the use of its Revlimid drug to anemia patients. Report

California biotech: Strong, growing but worried. Report

And finally... Vitamin E may ward off physical decline in the elderly, a new study shows. Report