Why Biotech Stocks Are Cheap

EntreMed's rally points up the big risks, but now they may be worth taking

When all is said and done, there may have been more losers than winners in last week's bizarre "rally" in the shares of the cancer-drug firm EntreMed. The stock began the week at $12 and ended at $33 1/4, a tidy 177% runup. But in the process, the company's 12 million shares outstanding changed hands an average of four times each--at prices up to $85. Sure, anyone who bought the stock more than a week ago received a windfall. But, in theory, there are three times as many people who got creamed. Cancer could well be eradicated before some of those...

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