BiotechBull

Investing in Biotech: The 3 Phases of Clinical Trials

One major point of conetntion.......if a phase 1 cancer drug shows efficacy (even though the trial is not controlled) you are talking about ~$30-$50mm upfront payment for the developer if it decides to out-license at that point....if they wait that $ increases exponentially.

Let's say this phase 1 drug is in-licensed by a big-pharma company---it could get to the market in as fast as 3-4 years--producing significant revenue streams much faster for the small biotech developer that anyone expects--inherently leading to undervaluation by the street.