The biotech industry is notably risky, but can produce stocks that see massive gains within a day. How can this happen? Well, many of these companies depend on FDA approval for their drugs to enter the market. This is essential since the drug sales comprise a large portion of these companies’ revenue. However, many of these companies are in the very early stage of production and research with many potential drugs. In the early clinical trials phases, many of these drugs may be promising but soon lose potential. That’s why if a drug makes it through all the phases, it can be a big deal for the company.
However, finding the companies that are likely to produce big breakthroughs or continue capitalizing off of their current ones can be difficult. Thus, we have done the work for you and present you with three cheap biotech stocks to buy now.
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