When Long Island's OSI Pharmaceuticals won U.S. FDA approval for Tarceva (its top cancer drug prospect) on November 18, the company's stock was trading at $64.25. Days before, Newsday had described the company as "standing at the threshold of a huge moment in its young history, paving the way for profitability, recognition and a place on the biotechnology map." After all, Tarceva was the "first homegrown pharmaceutical drug to be discovered, developed and marketed on Long Island."

Derek Lowe, who authors the In the Pipeline industry insider for Corante, has a fascinating piece on how the Wall Street investment community has been following the story at OSI Pharmaceuticals. Even with approval for Tarceva, some Wall Street analysts are predicting trouble ahead, mostly because a competing drug from AstraZeneca may perform better. The company's stock price (now at $48.75), they warn, could soon dip into the low 30's.