Follow the winners

Although product setbacks outnumbered approvals for the second consecutive quarter, biotech investors in the fourth quarter were focused more on the quality of the good news than on the quantity of bad news. Indeed, the fourth quarter itself was back-loaded, as a host of significant drug approvals were announced in December (see "4Q Approvals & Setbacks," A13).

Some large biotechs showed a double feature, including Elan Corp. plc (ELN, Dublin, Ireland), which received FDA approval for its Tysabri natalizumab to treat multiple sclerosis (MS) and Prialt ziconotide to treat severe chronic pain. Tysabri is partnered with Biogen Idec Inc. (BIIB, Cambridge, Mass.)...