Why Zalicus and Geron Shares Plunged

In this video, healthcare bureau chief Brenton Flynn talks with analyst Max Macaluso about two biotech stocks, Zalicus and Geron, that dropped significantly on Monday after poor clinical trial results were released.

Zalicus, a biotech that develops drugs for the treatment of pain and inflammatory diseases, announced that it will halt the development of its rheumatoid arthritis drug, Synavive. Geron, a company focused on discovering new treatments for cancer, canceled its phase 2 imetelstat clinical trial for the treatment of breast cancer. Geron also indicated that it will not bring imetelstat to phase 3 trials for the treatment of non-small-cell lung cancer.

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Brenton Flynn has no positions in the stocks mentioned above. Max Macaluso has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Covidien. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On September 11, 2012, at 5:04 PM, surmot wrote:

    iam sure that there where other poeple aware of this the day before that got to sell for 2.90

  • Report this Comment On September 11, 2012, at 5:08 PM, surmot wrote:

    not to mention they probly know of somethin else so there buying right now.just to screw us again but not me.gern should just close shop right now

  • Report this Comment On September 12, 2012, at 12:12 PM, Ronz8In wrote:

    The price just before the drop was in the $1.40 to $1.50 range. Still hard to swallow, but hardly the "$2.90 conspiracy" put forth here.

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