This column originally posted on RealMoney.com at 7:10 a.m. EDT. For more information about subscribing to RealMoney, please click here.
Let's open the Biotech Mailbag.Yasha C. asks, "Could you give us your views on Savient Pharmaceuticals ( SVNT) and Arena Pharmaceuticals ( ARNA)? Arena and its experimental obesity drug. Not much has changed with Arena except for the company's stock price. It's lower. These days, that doesn't qualify as news. Yasha emailed me on Monday at 4:05 pm, after Savient's share price was absolutely shellacked, down 74% on that day alone. I'm assuming he wants to know if the selloff was warranted, or if there is any reason to hope for a rebound. Savient surprised a lot of people Monday (and not in a nice, you-made-me-breakfast-in-bed sort of way) with new safety data linking its gout drug Puricase to serious cardiovascular side effects. None of the placebo patients in the study reported an adverse cardiac event. This is not the kind of news met with investor elation even in the most bullish of markets. In today's environment, it's a disaster, compounded by the fact that the Food and Drug Administration is particularly sensitive to cardiovascular risk. (Anyone remember Vioxx?)
Charles B. says, "As predicted, Progenics Pharmaceuticals ( PGNX) has done almost everything right, and these