Big Pharma Has Mad Love For These 2 Biotechs
It can be hard for a non-scientist to judge the validity of a biotech's claims. Are this company's drugs going to be approved by the FDA? How valid is its research? These questions are almost impossible to answer. Even the scientists themselves can't be sure they're right until the clinical trials are complete. So how can a layperson invest with any sort of assurance?
The quick and dirty truth is that you can't. There's a huge amount of risk in biotech investing, and some of it can't even be quantified. But it is possible to reduce it.
One thing I love to see in a biotech is a collaboration with a big-pharma company. I love it when very smart and knowledgable people in the drug industry invest millions in my little biotech. This investment validates the science. It brings in cash, and promises of future cash. It reduces expenses (if the partner is paying for drug development).
Source Fool.com
