It’s no secret that biotech is one of the riskiest industries for investors. That’s because developing novel therapeutics produces very black or white outcomes. In other words, you’re wrong or you’re right.
On the bright side: investors can make quick cash when companies successfully bring drugs to market (or make strides in doing so.) As mentioned in the Tale of the Tape, ChemoCentryx appreciated a double today after the FDA approved its new drug for vasculitis. ChemoCentryx develops drugs for inflammatory/autoimmune diseases and cancer. Back in May, an FDA advisory panel voted 10-8 in support of approving the drug that just got approved. The spike put ChemoCentryx back on the map:
However, it’s not all sunshine and rainbows in biotech world. After all, the overwhelming majority of therapeutics flunk in trials (or get rejected by regulators.)
Just take Allogene Therapeutics for example. They were slapped after the FDA put the company’s cancer drug study on hold. A report of “chromosomal abnormality“ in a single patient prompted a halt to the company’s gene therapy trial. Allogene’s gene therapy will remain suspended until the FDA concludes an investigation.
The company’s stock cratered, falling over 45.6% in the last five days. Get a load of this:
Like we said, black and white. High risk, high reward, and sometimes — highly entertaining. Pop into the boards for $CCXI and $ALLO to see more.