BOSTON ( TheStreet) --"Fail" is re-entering the lexicon of the biotech investor. Biotech stocks seemed like they could do no wrong for awhile there, but all hot streaks come to an end eventually, witnessed by a recent string of disappointing clinical trial results and FDA rejections. Monday, Tranzyme Pharma ( TZYM) announced the failure of a phase III study of ulimorelin, an experimental drug designed to accelerate the gastrointestinal recovery of patients after bowel surgery. Transyme shares plummeted 71% to $1.49 in early trading. Late Friday, Anthera Pharmaceuticals ( ANTH) was forced to halt early a phase III study of its heart drug varespladib. The problem: Varespladib doesn't work. Anthera shares are trading down 55% to $2.81 in Monday pre-market session. Also Friday, Peregrine Pharmaceuticals ( PPHM) released negative results from a phase II study of its lung cancer drug bavituximab, which was only able to delay tumor growth by 9 days over a control. 10 Top Warren Buffett Dividend Stocks These three drug blowups follow closely the setback for Oncothyreon's ( ONTY) lung cancer vaccine Stimuvax, which failed to show a significant benefit after a much-hyped interim analysis of a late-stage trial. The FDA approved a new therapy to improve lung function of premature babies from Discovery Labs ( DSCO), but a short-lived pop in the company's stock price was quickly sold off. FDA also rejected drug applications from NeurogesX ( NGSX) and Astex Pharmaceuticals ( ASTX). The Nasdaq Biotechnology Index is up 14% for the year and still outperforming the broader indices, but the gap is narrowing. What was an 11% margin in mid-February between the NBI and S&P 500 is now down to a 5% gap. Investors are being reminded that drug development is risky, but they are also being bombarded with a glut of new stock issued by biotech and drug companies seeking to raise new cash on the sector's strength. Amylin Pharmaceuticals ( AMLN), Xoma ( XOMA) and Jazz Pharmaceuticals ( JAZZ) are among companies selling stock to raise cash in recent weeks. 10 Mid-Cap Stocks That Have Almost Doubled in 2012 Adding insult to injury, Peregrine filed a new $150 million mixed shelf on the same day it announced the negative bavituximab data. Adventrx Pharmaceuticals ( ANX), a serial stock diluter with an abysmal drug development track record, signaled its intent to once again hit up investors for more cash. The company filed a $150 million mixed shelf Friday.