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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV