Penny Stock at Bottom of Nasdaq After Drug Data

Analysts are devoted to the drug stock, though

The shares of Clearside Biomedical Inc (NASDAQ:CLSD) are down a whopping 52.7% to trade at $2.63 this morning, after Xipere, the company's eye therapy drug, failed a late-stage study. The drugmaker will discontinue the development of the combination therapy for retinal vein blockage, but will still file a marketing application for Xipere at year's end for treating uveitic macular edema.

Out of the gate, CLSD fell to $2.49, a new record low. The shares have been carving out a channel of lower lows since mid-July, with their 30-day moving average containing any breakouts. Even prior to today's drop, the equity had shed 20% this year, and is on its way to a fifth straight losing month.

Analysts have been undeterred by the drug stock's recent struggles. Currently, all five of the brokerages covering CLSD rate it a "strong buy," and its consensus 12-month price target sits all the way up at $23. For reference, the security hasn't traded near that level in almost two years.

Short sellers have been piling on, though. Short interest increased by nearly 20% in the last two reporting periods to 1.05 million shares, the most since August 15. However, this only represents 3.5% of CLSD's total available float, indicating there is still ample room aboard the bearish bandwagon. Of course, the shares are on the short-sale restricted list today.