Shares of Genta (OTC:GNTA) plummeted on Friday by more than 25% as the company announced that the FDA has rejected the company's New Drug Application (NDA)f or Genasense plus chemotherapy for the treatment of Chronic Lymphocytic Leukemia [CLL].
This is a huge blow to the company as it is trying to recover from previous denials. This could very well be the final nail in the coffin for Genasense, and Genta for that matter.
The future looked favorable a couple of months ago, as institutional investors would not have purchased $16 million worth of company stock if an FDA approval was not expected.
It looks like the company and its investors were surprised by the FDA decision, even though the company had received an unfavorable review from an FDA Review Panel back in September, which is usually a pretty decent warning sign.
So what is next for Genta? The company said it will still seek approval else where in the world, but a denial by the FDA and hence, the loss of the U.S. market, is a large obstacle to overcome.
Shares of Genta were trading as low as $0.42 a share during trading on Friday. The stock debuted back in 1992 and was trading as high as $150.
Looks like Genta is sinking ever deeper into the vast oceans of Pennyland, and it does not look like it will be able to recover for a very long time, if at all.
GNTA 13 yr chart: