pSivida, Alimera and Ariad Join Bio-Implosion Watch

pSivida Corp. (NASDAQ: PSDV) is getting crushed after the U.S. Food and Drug Administration (FDA) decided not to approve its treatment for an eye disease that is common in diabetic patients. Its stock is down 44% at $2.12, against a 52-week range of $1.17 to $5.60, and its pre-implosion market cap was only $101 million.

Alimera Sciences Inc. (NASDAQ: ALIM) is following pSivida down the drain, as that FDA denial applied to the treatment licensed and sold by Alimera in other markets. Alimera shares are down 35% at $1.75 in premarket trading, against a 52-week range of $1.26 to $5.69, and its pre-drop market cap was a mere $85 million.

Ariad Pharmaceuticals Inc. (NASDAQ: ARIA) is tanking on news that it will discontinue its phase II trial of Iclusig. This was placed on clinical hold last week by the FDA after some patients suffered arterial thrombosis or other negative side effects. Ariad’s drop is a re-implosion because it already was hammered. Now shares are down 31% at $3.07, against a prior 52-week range of $3.98 to $24.85, and its new market cap is going to be approaching $600 million. Ariad was a $17 stock before last week’s implosion.

Again, the biotech and emerging health care tech sector is one of high-risks and high-rewards. Caveat Emptor!