Biogen is a classic example of what can happen to a biotechnology company that hits a home run with a single product early in its life.

Biogen is one of the industry's biggest and most established players, with a 30-year history, annual revenue of more than $3 billion and a market value of $18 billion.

Even so, over the past three years, its shares have fallen roughly 6.5 percent, hurt by the temporary withdrawal of Tysabri from the market in 2005 because of safety concerns. That result compares with a 46 percent rise in the American Stock Exchange Biotechnology index.

"Biogen is a classic example of what can happen to a biotechnology company that hits a home run with a single product early in its life," said David Webster, a consultant with Webster Consulting Group. "They start developing big egos, buying other companies, building office space in high-rent districts and expanding into areas in which they don't have expertise."


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