Citigroup (C) Still concerns that bank can hold off a government rescue due to consumer debt balance sheet issues. Drops to $7.89 from 52-week high of $35.29.

CIT Group (CIT) Analyst said CIT’s ability to become a commercial bank is critical to its future. What it it does not work out? Drops to $2.43 from 52-week high of $30.75.

Saks (SKS) Bad earnings, concern about debt. Down to $2.71 from 52-week high of $22.19.

Xtl Biopharmaceuticals (XTLB) Important drug fails trial and analyst downgrade. The daily double. Falls to $.11 from 52-week high of $4.96.

Douglas A. McIntyre

The company has announced that the top-line results from its BicifadinePhase IIb clinical trial to treat diabetic neuropathic pain.

The primary objective was to compare the efficacy of two doses ofBicifadine against placebo in reducing pain associated with diabeticneuropathy. The primary endpoint was the reduction in pain score duringthe course of treatment. 

The company announced that the study failed to meet its primary endpoint. The trial also failed to meet key secondary analysis.  This one sounds just like Carlito’s Way:"Here Comes The Pain!"

The company is spending the next few days to further analyze the dataand decide on the appropriate course of action for the Bicifadineprogram…. for the company.

In only 15 minutes of normal trading and with the pre-market tradingvolume, there has been over 12 million shares trading hands.  This oneis perhaps the ugliest of all biotech implosions.  Shares are down 93%at $0.14.  Its prior 52-week trading range was $1.58 to $4.96.  This stock has only about 29 million shares outstanding, so many of the people trading this stock this morning will have a higher value than the market cap of this one.

Welcome to the land of biotech zombies.

Jon C. Ogg
November 18, 2008