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Buying Biotech Syocks

I have worked in the Biomedical and Biotech industry for just over 40+  years, about 50% as a consulting Engineer & IP Expert witness, 25% as a mid=level Corporate manager and 25%  building up a small Back end of Biotech company which designed unique disposables for diagnostics and drug discovery. I sold my company in  1997.1999 and retired by end of 2000.

I have been an investor in Biotech company  since 1985 and am currently invested in several companies  listed below, you will see some winners and losers. Overall I have  experienced  in the 25 years as an investor you can either Lose big  and/or Lose big. Biotech start-up in the development stage of new  discoveries  always show big potential.

Investment  from the Big Pharma's can at times provide confirmation of the potential, but that is not always a good guide, the best of due diligence   can  still make a loser in Phase I, II or even III  AND ON OCCASIONS  EVEN IN THE FIRST 3 YEARS OF INTRODUCTION OF AN APPROVED DRUG OR DEVICE.

One  strategy that has helped me  control both my losses and winnings is to  AVOID GREED and OVERCONFIDENCE, even if you know the CEO, CFO or CTO, not that they are likely to disclose anything of consequence but their reputation in the industry  and how big a position they have in the company is an indicator

As soon you start to see  gains in a start-up of 25% or more, depending on your risk tolerance, start taking  25% of the gains of the table, with well established Biotech  you can wait somewhat longer. But whatever  you read or  hear to risk it all is wrong, even though I have  won big time. But that was in the early years  and I was  not in any need to cash in.

Since then I have made some losses  by hanging in  on some what seemed sure things, classic example is XKEM, I lost 40% profits and my original investment of $24,000.  it  is now  pretty much lost, the value is $ 500 and I am holding on just in case that 1 in a million cases it rises from the ashes.

SEPRACORE, Genzyme, INCYTE AND Biosphere were 4 of the 8 biggest winners for, only because i got in early and waited several yearts. Incyte is the only one i made 50% + in one year recently but sold 75% yesterday as it started to go down in the last 2 weeks for no apparent reason, just as HGSI which had made great gains suddenly lost80% last week for some bad news on one of their products, bu HGSI is a solid firm and could still go up within the next year, so I will hold on because I do not need   this year any loss write offs.

More next time, here are the  companies I hold shares in, no particular order:
HGSI,GTBC,INCY,CERS,PWRM,VPHM,RDY,SPPI,SNY, OXB.LSE,CBMC,ATHX,BBH, BSMD

GOOD LUCK,  MANY A TIME LUCK PLAYS A  BIG PART, but watching when Phase II and III are due for completion will tell you when they are about to go up or down in a big way.





Disclosure: HGSI,GTBC,INCY,CERS,PWRM,VPHM,RDY,SPPI,SNY, OXB.LSE,CBMC,ATHX,BBH, BSMD,PFE