Investing on Biotech Stocks? Then you might find this commentary from a Motley Fool Rule Breakers analyst useful. Karl Thiel discusses three factors important in identifying a biotech firm to invest on:
1. Management: The success of a company relies as much (or perhaps more) on the quality of its drugs as the entrepreneurs behind it.
2. Phase 2 Trials: “A company that takes its time and gets phase 2 right greatly increases its chances of positive phase 3 results.”
3. Access to new drugs: “[snip]investors are far better off with a company that has a discovery and research engine that can produce new drug candidates.”