Small-fry squashed

Among last year's best-performing large cap biotechs were an acquiree and an acquirer: HCV play Pharmasset Inc. and Valeant Pharmaceuticals International Inc. Other big cap stocks also did well overall, while investors abandoned their small- and microcap brethren in 2011.

Biotechs valued at less than $200 million as well as those with a $200-$499 million market cap shed almost one-third of their value on the year, while biotechs valued at $5 billion or more added 8% last quarter and on the year (see "Results by Market Cap")...