Biotech Stock Mailbag: Year in Review

In the "One Call I Wish I Could Take Back" department sits Human Genome Sciences(HGSI) -- arguably the best biotech turnaround story all year and one I missed totally. I had two chances to take a liking to a very cheap Human Genome before the positive lupus data propelled the stock skyward like a rocket, but I whiffed both times. Not my proudest moment, for sure.

Another miss was Medarex. I was fortunate to post an email from a reader who made a very cogent argument for owning the stock in April. While sympathetic to his thesis, I couldn't quite get on board. That was dumb because Bristol-Myers Squibb(BMY) acquired Medarex in July for a very sweet 90% premium.

(I'm hoping readers like Mr. Medarex contribute their ideas to the BSMRP, because if they do, it'll be a moneymaker.)

The Mailbag can be a force for positive change. In July, I called for the resignation of Discovery Labs'(DSCO) CEO Robert Capetola. A few weeks later, he did exactly that.

BioCryst Pharmaceuticals(BCRX) floated higher on a wave of H1N1 hysteria this summer. The Mailbag saw a bubble destined to burst -- which it did.

I am a glass-half-empty guy when it comes to biotech. Some like to sneer that I'm just a biotech basher. I prefer to think of myself as a skeptic, an attitude that certainly comes in handy when dealing with biotech stocks on a daily basis. The Mailbag pulled no punches this year with Geron(GERN), Osiris Therapeutics(OSIR), Northfield Laboratories(NFLD) and Antigenics(AGEN). Investors who heeded the advice were better for it.

But the Mailbag has a warm and fuzzy side, too, showing love for Vertex Pharmaceuticals(VRTX), ImmunoGen(IMGN), Allos Therapeutics(ALTH), AMAG Pharmaceuticals(AMAG) and Gilead Sciences(GILD), among others. Some of these stocks have performed well, others really well and some, not so much. And so it goes with biotech stock picking.

Lastly, the Mailbag would not be as fun without the hate mail. This year, readers really stretched themselves creatively to come up with new expressions of love and admiration. At various times this year, I was called a "liberal socialist scum" and a "Nazi Jew." Of course, I'm also a "mindless schmuck," a "looser" and just plain "bald." (A perennial favorite.)

The award for the best hate mail of 2009 goes to a guy named Mike, who despite some grammatical challenges, really outdid himself:

"It would of been watching you lose all your money on your stocks, your family, your house and your bank account. Even better if all of the above, plus seeing you getting infected with AIDS, anthrax, swine flu...oh well...just AIDS and anthrax (so that you don't die so quickly). Why? Because you're a useless [BLEEP] who continious to bash good stocks (GERN at $6, DNDN at $4, now SPPI) Tell me, what is the purpose of your useless life? [BLEEPING] [BLEEP] piece of useless [BLEEP.]"

Mike really likes me. He's just too shy to say it.

Thank you, thank you, thank you to everyone who emailed me with questions and comments this year. The Biotech Mailbag would be nothing without you, so I really appreciate your interest and help in making this, the third year of Mailbag, the best ever.

The Mailbag will be even better in 2010, so please send me those BSMRP picks and your questions and comments. With Christmas and New Year's approaching, I'm going to take a two-week hiatus, but don't worry because the Mailbag will return on January 8.

Until then, I wish you a Merry Christmas, a Happy Hanukkah and best wishes for a healthy and prosperous New Year.

-- Reported by Adam Feuerstein in Boston

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