Tuesday was not a good day to be a Vericel (NASDAQ: VCEL) investor. Discouraging news from a top regulator put investors in sell-off mode, with the stock falling by 14.8% on the day.

In what must have been a painful admission, Vericel announced Tuesday morning that the biotech's development partner MediWound received what amounts to a rejection letter from the FDA. Formally speaking, this was a complete response letter from the regulator, in which it said it could not approve the biologics license application (BLA) for the two companies' NexoBrid in the BLA's current form.

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Source Fool.com