After Philip Schein, the CEO of U.S. Bioscience, told Wall Street analysts last November that regulatory approval for the firm's new cancer-therapy drug was imminent, there was a stampede to buy the company's stock. By Jan. 7, Bioscience's share price hit an all-time high of 85, before a 2-for-1 split at mid-month. But on Jan. 31 came a shocker: a Food and Drug Administration panel decided not to recommend approval of the new drug, known as Ethyol.
That sent the stock into a free fall. It plunged 46% at the next session and never recovered. The shares are now trading at...
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