BOSTON (TheStreet) -- FDA rejections, clinical-trial blowups -- nothing spells "fail" like a drug stock gone bust.
Investors who love biotech and drugs stocks for their miraculous ability to double or triple in value are also at risk of getting stuck in nightmares like these: The five worst-performing drug stocks of 2011. Here they are:
No. 5: Alimera Sciences (ALIM)
See that steep, scary cliff in Alimera's stock chart in November? That's what happens when the U.S. Food and Drug Administration rejects your only drug. The FDA didn't just reject Alimera's Iluvien, regulators ran over the diabetic macular edema drug with their car, then backed up and ran over the drug again just to make sure it would never, ever get back up.Brutal. The stock: Investors left Alimera for dead because the company doesn't have the resources to resurrect Iluvien, and even if it did, the FDA's rejection was so harsh that it almost eliminated the possibility of approval -- ever. Alimera shares are down 88% this year, trading at cash.
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