Mela Sciences (MELA) - the ugly side of biotech

Mela Sciences (MELA), the Irvington, NY-based developer of handheld skin cancer detector, fell more than 55% in 3 trading sessions after FDA announced that the company's device might actually 'cause harm' to patients if approved. Adding to this, the biotech is under investigation for potentially violating federal securities law by 'misleading' investors with its reporting.  It seems that ugly has turned uglier for Mela Sciences!  Trading over $6 merely 48 hours ago, Mela Sciences has crashed to below $3 per share.

MELA will be facing FDA's advisory panel today to discuss the potential clearing of the device for marketing.  While the general consensus is that the maker of MelaFind (handheld detector of skin cancer) will not receive positive recommendation from the panel of medical experts, it is never 100% sure what the outcome will be.  A close tie may even relieve the biotech from the current doom.  In any case, the path to device approval will no doubt be treacherous for Mela Sciences from this point on. Stay tuned for FDA's panel conclusion.