[This is Part 1 of a series of posts about Investing in Biopharma]
You have already heard and read comments about it, however you don’t know exactly where to start … we all have had the same feeling.
Biopharma and Biotech companies are not very accessible stocks to follow-up, in comparison with other huge industries which are everyday on the newspapers, such as: Consumer Goods (Nike, Unilever, P&G), Technology (Facebook, Google, Oracle) and so on. On the contrary, these stocks seem to be ‘hidden’ and only available to medical experts or the wall street guys.
Since that’s not true, here are some advises to speed up your searches and leverage your decision-making in order to get the most of your future Biopharma/Biotech investments.
Decide your Approach
First of all, take a view from 20,000 feet and choose your approach based on: (1) Time you’ll dedicate (2) Effort you’re able to commit, and (3) Level of knowledge. Whichever approach you choose, you’ll want to monitor your portfolio to ensure it’s on track with your goals.
Where to get information
As much as data you gather, the fastest you will start visualizing the type of disease and the profile of the pharma where you think it will worth to start investing.
I suggest you to make your own analysis – this part it will take the majority of the time, but believe me that is better than trust on ‘gurus’ and biased Analysts – so, take all the information available in the IR (Investor Relations) website and focus on the key events; News, Official announcements, Board changes… and real numbers, Financial and Incomes statements and Balance sheet.
The most self-explanatory and concise information about the drug development process that I’ve ever seen is available in the Roche Youtube channel:
Last but not least, there are some excellent online-tools where all this info has been collected and you can take advantage of it. A good example is Finviz where the data is shown in a quick and tidy manner.
Start before you feel ready
If you’re working on something important, then you’ll never feel ready. A side effect of doing challenging work is that you’re pulled by excitement and pushed by confusion at the same time
James Clear, Atomic Habits jamesclear.com
In order to demonstrate the theory above (James Clear give us the example of how he met Richard Branson), start right now researching about the following interesting pharma list of Nasdaq Penny Stocks:
Innovate Biopharmaceuticals, Inc. (INNT), Arrowhead Pharmaceuticals, Inc. (ARWR), ArQule, Inc. (ARQL), Xenon Pharmaceuticals Inc. (XENE), Endocyte, Inc. (ECYT), Madrigal Pharmaceuticals, Inc. (MDGL), InVivo Therapeutics Holdings Corp. (NVIV), OHR Pharmaceutical, Inc. (OHRP), Edge Therapeutics, Inc. (EDGE), Aytu BioScience, Inc. (AYTU), Auris Medical Holding AG (EARS).
Stay Safe Stay Informed
In conclusion, stay tune and try to learn from the experience, below a bunch of useful websites that you will probably need.
- FDA Novel Drug Approvals for 2018
- Biopharma insights from our journalists
- Top 25 Biotech Companies of 2018
- ClinicalTrials.gov Database
- US National Library of Medicine
- FDA Calendar for your biotech stock investing
- FDA Drug Trials Snapshots