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
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV