Don't Get Burned by the Next Cell Genesys

Simply put, when a biotech company tells you that their cancer vaccine must be working because it stimulates a cancer patient's immune system, don't drink the Kool Aid.

One last word on corporate partnerships: Cell Genesys' sweet deal with the Japanese drug maker Takeda meant little in the end. Cell Genesys has a bit more Takeda cash on hand so bankruptcy isn't looming in the immediate future. That's a plus, but the potential of GVAX was clearly not "validated" by Takeda's decision to partner.

Instead, Cell Genesys-Takeda goes the way of Novacea-Schering Plough (SGP Quote) or Genta (GNTA Quote)-Sanofi Aventis (SNY Quote) -- cancer partnerships gone bust.

While partnerships can work, they're no guarantee, so don't treat them that way.