Now that the sun has set on 2011, it is an excellent time to go back and review how the past 12 months treated some of the most popular stocks. Let's take a closer look at the year that was for popular biotech Cell Therapeutics
After starting the year at a split-adjusted $2.22 a share, Cell Therapeutics stock lost almost 50% of its value by the end of December, closing at $1.16. How did we get here?
It all starts in 2010, when the FDA rejected Cell Therapeutics' non-Hodgkin's lymphoma treatment and lead drug candidate pixantrone. Therefore, 2011 found Cell Therapeutics hanging on and fighting to get an approval. The company appealed the complete response letter, which didn't get the decision reversed but did get it another crack at the review process, with the FDA accepting its marketing application in early December. To keep the lights on, the company has had 2 dilutive offers this year raising $50 million, the second coming right after the stock popped 24% on the most recent FDA announcement.
If the company were confident in approval, it would have more sense to wait until a final decision was made to raise additional capital. This should give investors pause. However, we will find out early in 2012 whether Cell Therapeutics' Hail Mary results in a game-changing touchdown. Europe's version of the FDA, the CHMP, will decide on pixantrone in January, and the FDA decision should come in April.
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