I am looking to see if anyone is invested in BTAI, if there is an idea as to what may and may not take place with this company
Hi, Tolk1, I apologize for my delayed response.
I think any time you are investing in biotech, there is a degree of speculation involved because you are investing in the potential for the company to bring a game-changing therapy to market in a business where more candidates fail than succeed. While I can’t offer you individual or specific investment advice, what I have learned over the years (and years) is that when looking at biotech, don’t place all your eggs in one therapy basket.
When looking looking for a biotech in which to invest, focus on the whole pipeline. Do they have a steady flow of projects? Do they focus on niche health issues (small market) or widespread health issues (large potential market)? What is their success rate over time? Do they partner with the same companies, go it alone, or dance with different partners? These are all questions that could indicate a biotech worth investing in.
Above all, investing in biotech puts the need for patience in long term (3-5 years or longer) buy-and-hold investing to the test. You will suffer through failures from therapies that don’t get out of trial or don’t receive regulatory approval. And for the precious few that make it to market, you’ll face public pressure if you price therapies too high and you’ll face shareholder pressure if you price them too low.
Most of all, resist the temptation to latch onto a single therapy as making or breaking a biotech. When Remdesivir first came out as a therapy for COVID-19, the market latched on and drove the price of Gilead Sciences up. But then it became apparent that while it could shorten hospital stays, it did not have a significant affect on mortality, and the price crumbled.
Similarly, Moderna has brought just one drug to market - their COVID-19 vaccine. What happens after the world is vaccinated? Demand could drop precipitously if the vaccine proves to have long-lasting effect. On the other hand, the mRNA technology the company used to develop its vaccine in record time has the potential for many future applications, including revisiting older traditionally-manufactured vaccines.
For those who want a more in-depth investment into the biotech sector, the new Rule Breakers: Biotech Breakthroughs premium service offers a managed portfolio (with quarterly investment rounds). Check out https://fool.com/services for more information.
Who once gave up on a biotech too quickly and it went on to become a very successful investment, for someone else, so now for his few biotech investments, he’s applying almost infinite patience…
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