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5 Stupidest Small-Cap Stock Investments

These companies have lost shareholders a lot of money this year

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Aveo Pharmaceuticals

Aveo Pharmaceuticals185YTD Return: -73%

Another oncology disaster, Aveo Pharmaceuticals (AVEO) spent seven years developing a kidney cancer drug only to have federal drug regulators decide that the treatment was unsafe for patients and that the study was flawed and confusing.

In short order, AVEO stock went from over $8 per share to a bit more than $2, where it still trades.

The rejection by the FDA was a hard finding to bear, but Aveo is struggling through after scrapping its kidney cancer program and firing more than 60% of its staff.

This is one more case study in the all-or-nothing world of biotechs, where one life-saving treatment would win widespread acclaim for the researchers and big profits for shareholders … but a failure results in a race to zero as the company scrambles to regroup after all of its work has gone nowhere.

Article printed from InvestorPlace Media,

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