3 Biotech Stocks Ripe for Spring Portfolio Cleaning
It's April, which means spring cleaning, rain showers, and, in non-COVID times, tax season. This April, many previous growth stocks have cooled, and the biotech sector is no exception. FibroGen (NASDAQ: FGEN), Novavax (NASDAQ: NVAX), and Editas Medicine (NASDAQ: EDIT) have all taken a beating for various reasons. Let's see if any of these biotechs have a chance to bloom in the future, or whether now is the time to sell your shares.
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It usually is not a reassuring sign to see that, right before going in front of the U.S. Food and Drug Administration (FDA) for review, a company wants to clarify prior data in regards to cardiovascular safety. Likewise, it is not hard to imagine that if you give several people an experimental drug and see what happens and to whom -- i.e., you have made a guess at results before setting an endpoint -- then you could, in theory, test the data in any way that produces a favorable result. This type of study is called a post-hoc analysis, and can lead to data-dredging and, at worst, leaves a study open to manipulation. Therefore, I take clinical trials utilizing data drawn from a post-hoc analysis with a grain of salt for these very reasons.
Source Fool.com
