Long/short equity, research analyst, biotech, healthcare

A High Risk-High Reward Biopharma With Two Pending Catalysts

Biotechs with pending clinical trial results or New Drug Applications can generate astronomical returns for investors that get in early. Positive Phase III results for Acadia Pharmaceuticals' (NASDAQ:ACAD) pimavanserin, for example, have catapulted the stock more than 980% in less than a year's time. On the flip side, biopharmas with critical failures in their drug pipeline are generally hammered by the market. Earlier this year, for instance, Aveo Pharmaceuticals (NASDAQ:AVEO) and Dynavax Technologies (NASDAQ:DVAX) both received Complete Response Letters from the Food and Drug Administration in regards to their leading clinical candidates, and consequently, their respective share prices have been pummeled. Playing biopharmas with pending catalysts is undoubtedly a high risk/high reward type of...

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