By Kathryn Calkins
Staff Writer

Shareholders come last in the queue of potential beneficiaries when a company begins to go under. Thus the notion that a biotech company would give money back to its investors when its technology fails to pan out is a novel one. However, giving money back before a company is ready to call it quits creates the possibility that management will lack the resources to continue meaningful development, particularly if a technology setback has made it difficult to raise new money.