This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cleveland BioLabs Loses Out On Defense Contract

A Defense Department rejection left Cleveland BioLabs (CBLI) stock in the dust on Friday.

Shares plummeted nearly 60% after the Buffalo, N.Y., company's proposed treatment for the gastrointestinal effects of radiation sickness, Protectan CBLB502, wasn't chosen for a lucrative DoD contract award.

Protectan, which has yet to undergo clinical human testing, is the company's lead candidate for acute radiation syndrome. Had it been selected by the DoD, the compound's development would have gotten funding through approval at the Food and Drug Administration, according to the company's latest quarterly filing.

The DoD instead chose Maryland-based Osiris Therapeutics (OSIR), granting it a $224.7 million package to develop an adult stem-cell therapy called Prochymal jointly with Genzyme (GENZ).

"We are deeply disappointed by this unexpected decision," said Cleveland CEO Michael Fonstein in a press release, particularly given what Fonstein described as "aggressive" and detailed prior feedback on the proposal from the DoD.

Still, Cleveland vows to continue developing the drug, aiming for regulatory approval by 2009, and it intends on responding to any future DoD solicitations.

Chief Scientific Officer Andrei Gudkov also said the company plans on continuing talks with the Department of Health and Human Services and other friendly governments "who are interested in its potential to protect against terrorist threats and nuclear disaster."

Cleveland shares ended down $4.69, or 58.6%, at $3.31. Osiris jumped $1.29, or 10.3%, to $13.86, and Genzyme dipped 0.5% to $75.05.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs