Binary events are an integral part of biotech investing; positive results from a clinical study can send shares soaring, while negative results can send a stock into a steep downward spiral.

Unfortunately, shareholders of drug developer Celsion (NASDAQ:CLSN) experienced the latter today. The company announced that its experimental liver cancer therapeutic, ThermoDox, failed to meet its primary endpoint in a pivotal phase 3 clinical trial. Health care analyst Max Macaluso breaks down this story in the following segment.

Max Macaluso, Ph.D. has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.