Celsion (CLSN) is a biotech stock that specializes in oncology drugs designed to treat difficult forms of cancer. It’s biggest treatment, ThermoDox, failed in clinical trials, and the stock cratered more than 80% on the news in January.
Shares were trading as high as $9.44 a few weeks beforehand, with the biotech stock boasting a market cap of more than $500 million, but CLSN then was punished to around $1.20 a share where it still currently trades.
This is a case study in the pains of biotech investing. All it takes is one horrible FDA trial to render years of costly research meaningless and upend hopes that the company will ever turn a profit or be wooed by Big Pharma. Right now CLSN is clinging to life, but it continues to bleed cash and has a very rough road ahead.
Investing in Celsion might have seemed like a good idea based on the hopes of curing cancer … but this turned out to be one toxic stock.