Dew,
If you have chance could you do a list of the stocks that have "blown up" (lost 50% or more) in small-cap biotech due to either a failed trial or failure to get FDA approval or the revelations of SAE's in 2005. NABI, RIGL, PCYC, PTN, AXYX, PARS come to mind right away.
Thanks,
Bladerunner