Investment firm H.C. Wainwright just took a hatchet to its price target for Capricor Therapeutics, cutting it from $35 to $24 after the FDA rejected the biotech company's treatment. It's a tough blow for Capricor, signaling regulators aren't convinced by their data—at least not yet.

Editor’s Note: FDA rejections always sting, but this one hits investors doubly hard with a major downgrade from a key analyst. For biotech watchers, it’s a reminder of how risky these stocks can be—one regulatory decision can send shockwaves through a company’s valuation overnight. Capricor now has to regroup and figure out its next move.