Poked in the eye

Investors were beyond incensed over OSI Pharmaceuticals Inc.'s planned acquisition of Eyetech Pharmaceuticals Inc. for $935 million in cash and stock. They abandoned the stock in droves last Monday, shaving 22% off of OSIP's valuation when the deal was announced.

From the buyside's view, OSIP is buying a distressed property, as the Street has decided that EYET's Macugen pegaptanib for age-related macular degeneration is living on borrowed time until Genentech Inc.'s Lucentis hits the market. ...