Westminster, Co. ( TheStreet) -- Allos Therapeutics ( ALTH) shares are down 4% to 5% today, despite yesterday's 10-4 vote by an FDA advisory panel to recommend approval of the company's lymphoma drug Folotyn.

That's not exactly the reaction Allos bulls were hoping for, but the panel was contentious, which surely has some folks worried that the FDA won't follow through with an approval on Sept. 24. I don't happen to share that belief. Has the FDA, in recent times, gone against the recommendation of a cancer drug advisory panel? I don't think so. Some might say Dendreon ( DNDN) fits that description, but Provenge was reviewed by a different committee and division of the FDA.

After that, the chatter I hear today is that Allos was priced for perfection going into yesterday's meeting -- i.e. Allos is already fairly valued; the contentious nature of the advisory panel will dampen doctor's enthusiasm for Folotyn; the commercial market for peripheral T-cell lymphoma (PTCL) is tiny; Allos will face competition soon, perhaps from privately held Gloucester Pharmaceuticals, which also had a lymphoma drug recommended for approval yesterday.

Once Folotyn is approved, no doctor will remember, or care, that some cancer expert on a panel argued that the drug didn't work so well (especially since that was the losing argument). Patients with PTCL who have nothing else to treat their disease are certainly not going to care.

Folotyn is going to be approved, and when it does, it will be used. Sales in the U.S. could top $250 million to $300 million. Upside comes from PTCL sales in Europe and Asia as well as the potential for future use in other cancer types.

Let's not forget that Folotyn is an un-partnered cancer drug asset well on its way to approval. That's a rare and in-demand commodity these days.

Osiris Tanks on Data Leak?

(At 12:38 PM EDT)

Updated with new information from Osiris about Prochymal

Osiris Therapeutics ( OSIR) is tanking this afternoon, down roughly 19% on no apparent news, although this has the look and feel of a negative data leak.

The company is expected to release results from two phase III studies of its mesenchymal stem cell drug Prochymal in patients with graft-versus-host disease. Guidance from Osiris was for data in early September and a lot of investors took that to mean this week. The company is also reportedly holding a board meeting this week.

Full disclosure: I was short Osiris in the model portfolio of my now-defunct investment newsletter because I felt that the Prochymal studies would fail. You can find my Osiris stories here.

Update: Osiris CEO Randy Mills is reportedly telling sell-side analysts that the company doesn't have the Prochymal data and the contract research organization (CRO) in charge of running the studies is still cleaning up the database.

But previously, Mills all but promised analysts that the final data would be ready this week, which means the CRO would have been finished with their work last week.

Another Osiris delay? I guess we shouldn't be surprised. And Mills' assurance to the sell-side community isn't helping the stock recover. It's still down 17%.

Elan, Biogen Go to Court On Tysabri: BioBuzz

BOSTON, Mass. ( TheStreet) -- Elan ( ELN) and Biogen Idec ( BIIB - Get Report) head to court today for the initial hearing in their legal custody battle over the multiple sclerosis drug Tysabri, reports the research firm Cowen in a note to clients.

The legal tussle is bit convoluted, but I'll give it a whirl: When Johnson & Johnson bought a minority stake in Elan in July for $1.5 billion, J&J also obtained the right to help Elan finance a purchase of Biogen's 50% ownership in Tysabri, should Biogen be acquired.

Biogen balked at that provision, claiming that Elan was breaching its part of the Tysabri partnership agreement, which could force the company to give up rights to the drug

Elan countered by filing suit against Biogen, asking a federal judge for an injunction to prevent Biogen from acting on its breach-of-contract threat, and ultimately to rule on the legality of its Tysabri financing option with J&J.

Confused? Well, the lawyers get to sort all this out in court starting today.

Says Cowen: "We estimate that Tysabri now accounts for 40-50% of Elan's share valuation, so an adverse ruling in this breech-of-contract dispute and the potential forfeiture of Elan's Tysabri rights would be devastating to Elan's share value. We believe Elan has a solid legal case, but this dispute is a wildcard."

FDA Extends Endo Drug Review by Three Months

The U.S. Food and Drug Administration has extended the review of Endo Pharmaceuticals' ( ENDP - Get Report) long-acting testosterone product by three months, the company announced Wednesday night.

The agency's approval decision will now come Dec. 2 instead of Sept. 2. The delay wasn't entirely unexpected. FDA needs more time to review a proposed risk-management plan for the testosterone therapy, which is known by the brand name Nebido outside the U.S., where it is already approved and sold by Bayer Schering.

Endo said FDA has not asked the company for any new clinical trials or data on the product.

Auxilium Drug Study published in NEJM

A phase III study of Auxilium Pharmaceuticals' ( AUXL) drug Xiaflex was published Wednesday night in the New England Journal of Medicine, ahead of an FDA advisory panel meeting on Sept. 16 to review the drug.

Xiaflex is being developed as the first non-surgical treatment for advanced Dupuytren's disease, a condition in which the tendons of the hand that help move the fingers of the hand become thickened and scarred.

-- Reported by Adam Feuerstein in Boston

Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.