Arbitrary & capricious

Stock prices don't always tell the whole story. A sharp reminder was provided by two deals last week, Somatogen Inc./Eli Lilly and Celtrix Pharmaceutical Inc./Genzyme Corp.

SMTG stock rose $1.63 last week on the news that Lilly would put at least $20 million into SMTG's recombinant blood substitute program and provide

manufacturing support that could bail out the biotech company from the financial burden of building a facility that was too expensive to fund through the public markets.

CTRX shares, on the other hand, initially fell 13 cents before eking out a 50-cent gain on the news that GENZ could invest up to $90 million to develop the company's BetaKine product for several indications.