In news that shows how dangerous investing in small-cap biotechs can be, Sonus Pharmaceuticals (NASDAQ: SNUS) said that its late-stage trials of breast cancer drug Tocosol Paclitaxel have failed.
Sonus shares are down 85%, and are the most actively traded on any US exchange. The stock changes hands at $0.70 down from a 52-week high of $6.32.
Sonus has been something of a one-trick pony. Its revenue has been in the $3 million to $5 million range over each of the last four quarters when it lost $25 million.
With $42 million in cash on the balance sheet, at least the company has some time.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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