Should I buy biotech stocks

 Are biotech stocks a good investment?

  • Biotech stocks are high-risk, high-reward investments. ... small- and mid-cap biotech stocks are among the most high-risk, high-reward stocks in the market. Many of these companies are developing drug candidates that could ultimately address multibillion-dollar markets.
  • One batch of trial data or approval or rejection by the U.S. Food and Drug Administration can send a biotech stock soaring or plummeting in a matter of minutes. 
  • 2021 biotech stocks to watch: SAGE ARGX ALNY FATE INCY APLS SRPT NBIX

https://money.usnews.com/investing/stock-market-news/slideshows/the-best-biotech-stocks-to-buy-today

What is the number 1 biotech stock?

  • XBIT, BDSI, and ACRS are top for value, growth, and momentum, respectively. The biotechnology industry includes companies that develop drugs and diagnostic technologies for the treatment of diseases and medical conditions.
  • The biotechnology industry includes companies that develop drugs and diagnostic technologies for the treatment of diseases and medical conditions. 
  • These products must go through rigorous, costly, and time-consuming trials before potentially obtaining approval from the U.S. Food and Drug Administration (FDA). 
  • This means that investors may wait for years before knowing whether a drug under development will pay off.

How to choose biotech stocks?

  • Watch for companies researching areas such as cancer, AIDS, diabetes, heart disease, neurological diseases, immunological diseases, viral infections, and tissue regeneration, where there is a high degree of incidence in the population. Success in these areas will ensure the company a ​faster return on its investment in R&D and licensing efforts.
  • Look for ​companies with pipelines consisting of more than one product. Those with at least 2 products in clinical trials are safer than those with only one good idea.
  •  Look for companies with products that are nearing the end of the R&D/ FDA approval process and can be realistically expected to hit the market sooner than later. Of course, by this stage, success is still not guaranteed but if the bulk of stringent testing is completed there is a higher likelihood that you will soon see some return on your investment. 

Why are biotech stocks considered unpredictable?

  • Not only do these companies not have a revenue generating product, they also are burning through their cash reserve at crazy rates, all while going through very risky clinical trials.

Maybe I should set aside some funds for biotech stocks and wait 6 months.











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