It is certainly not a good day for Cleveland based BioLabs that saw their shares sinking almost 25% of their market value. Today, when the stock market opened the market was going steady but soon the stocks for BioLabs went down and plunge almost 25% of the market value that it had. This happened soon after one of the important federal agency declined BioLab’s bid for further funding for the development of anti-radiation sickness drug.

As per the reports soon after the Department of Health and Human Services agency denied their proposal the shares for Cleveland based BioLabs came tumbling down almost 23.85% or 57 cents. The current stock market value of the share is $1.82 per share. The agency said that they would not support the development and funding of Protectan which is an anti-radiation sickness drug that they are making.

The company said that The Biomedical Advanced Research and Development Authority played an important role in the development and funding of this project. However, there were financial problems that had to be resolved. Now that the agency has denied the support it will be difficult for BioLabs to come up with that drug that they were going to make. It would also be difficult for the company to get approval for Protectan 502 drug from FDA. BioLabs have said that they will look out for another financial option so that they can fund this development project and they will resubmit their proposal to the agency again in the following months.