Welcome to the exciting world of pharma
investing where high-flying returns built on would-be wonder
drugs can turn into a poison pill quicker than you can say
sell. No, this isn't another story about recalled pain-killer
Vioxx and the smarts it caused hedge funds holding Merck. This
time around it's a tale about hedge funds who suffered
portfolio shock after injecting big bucks into Biogen and Elan,
the producers of the drug Tysabri.
You will already have heard that Larry Feinberg's Oracle
took a major blow from Tysabri's double-barreled debacle when
he found himself holding 1.3 million shares of Biogen and close
to 4.6 million shares of Elan at the start of the quarter. But
you may not have heard of all of the other hedge fund groups
that were invested in both companies over the same period.
The story begins in mid-February when Biogen stock rocketed