Wall Street, sometimes, just doesn't get it.Contrary to what is often called the "increasing sophistication of biotechnology investors," stock prices that publicly held companies live by can react in strange and painful ways to news that appears positive - and to rumors or ideas about news that might not be.

Transition Therapeutics Inc.'s Islet Neogenesis Therapy in Phase I for diabetes bagged the firm a deal potentially worth more than $56 million with Novo Nordisk A/S. (BioWorld Today)

After losing 26 percent of its stock value on rumors that upcoming news regarding its cardiovascular drug would be negative, Esperion Therapeutics Inc. recovered when positive data were published. (BioWorld Today)

With its $515 million offer, Cephalon Inc. apparently has won the bidding war for CIMA Labs Inc., and the two have signed a definitive agreement to merge. (BioWorld Today)

Palatin Technologies Inc. reported positive data from a Phase IIb trial with PT-141, an erectile dysfunction drug that has not only proved effective but also - thanks to a different mechanism of action - gets around the potential cardiovascular problems with existing therapies. (BioWorld Today)