Investor Alert

Dec. 27, 2010, 9:36 a.m. EST

Alimera, pSivida crushed by FDA setback

BOSTON (MarketWatch) -- Shares of partners Alimera Sciences (NAS:ALIM) and pSivida Corp. plunged almost 20% early Monday on news that the U.S. Food and Drug Administration has refused to approve their drug Iluvien for the treatment of diabetic macular edema. In a statement released late Thursday, the companies said that while the FDA is withholding approval pending the submission of additional clinical analyses, it is not requiring the companies to run more clinical trials. Alimera licenses Iluvien from pSivida, which will receive royalties on product sales if and when Iluvien is approved.

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