Biotech Mailbag 2008 Review

I ticked off a lot of Cell Genesys(CEGE Quote) shareholders this year after predicting doom and failure for the company's prostate cancer vaccine. Along the way, I got to discuss the importance of randomized clinical trials and why big-buck alliances with large drug companies don't always guarantee success. In the end, Cell Genesys and its prostate cancer vaccine program blew up.

The Mailbag this year also offered me an opportunity to discuss some important macro issues facing the biotech sector. In March, I wrote about how Wall Street's biotech investing pros were faring badly and were nervous about the outlook for the rest of the year. I had no idea at the time how painfully true that observation would turn out to be.

Also in March, I warned against investing too heavily in small-cap biotech stocks in 2008 due to the market's aversion to risk. While no one was spared pain this year, small-cap biotech stocks did end up suffering more than their big-cap brethren.

One thing I really like about writing the Mailbag is that it gives me a chance to research stocks that would otherwise fall off my radar screen. Readers of the Mailbag have a knack for finding small, sometimes obscure, biotech stocks. So, this year, I got to write about Delcath Systems(DCTH Quote), Genvec(GNVC Quote), Regenerex Biopharma(RGN Quote), Oramed(ORMP Quote) and NeurogesX(NGSX Quote), among others.

The Mailbag, naturally, devoted a great deal of space to big-cap biotech as well, including Gilead Sciences(GILD Quote), Biogen Idec(BIIB Quote), Genentech(DNA Quote) and Amgen(AMGN Quote). I discussed, among other topics, whether any of these large biotech companies would be acquired in 2008. None were, although Roche is trying with Genentech -- a topic I'm sure will be covered in future Mailbags.