By Ray Blanco
This post The Upside for This Biotech Sector Could Be Explosive appeared first on Daily Reckoning.
There are few endeavors fraught with more risk than the development of a newly discovered therapeutic compound.
Like newly hatched sea turtles, many don’t make it to the sea. They dig out of the sand only to get snatched up by crabs and seagulls.
In fact, like the baby sea turtle, only a fraction of a percentage of potential new drugs ever survive their early trials and move on to the next stage of life.
The few that do are submitted to the FDA for clinical approval… If the FDA agrees the drug is safe enough, it goes into Phase 1 testing.
These are the turtles that have made it to the surf… to face new dangers from sharks and big fish.
Fewer than 10% of Phase 1 drugs ever make it to approval. The ones that do are like mature sea turtles — relatively safe to thrive and grow.
One of the best times to turn a fast profit on a drug-developing biotech is when it has a drug that has survived all the way through Phase 3… but hasn’t yet been submitted to the FDA for final marketing approval.
During that period, it’s common to see the developer’s stock start to run up as investors claim a stake ahead of commercialization. This is a period of volatility… but also big profit potential.
One of the most highly profitable opportunities in biotech right now is in pain management.
The pain management market in the United States is huge — but also fraught with problems.
The race to develop new pain drugs is more important than ever. The opioid crisis is crippling families and communities, leaving health care officials scrambling to find an answer.
Our mainstay pain drugs are highly addictive and dangerous. They kill tens of thousands of people every year.
It’s a big business for any drug developers working on a solution. Companies that can produce a viable drug designed to provide the analgesic effects of conventional opioids without the adverse side effects stand to make millions, potentially even billions.
Companies successfully completing Phase 3 trials then move into the final stage, filing for New Drug Applications with the FDA.
Filing an NDA is a big deal — and for you, it’s a key indicator that a company’s value could skyrocket very soon.
FDA approval of any new pain management drug could be huge for a company’s stock value. The growing need for suitable replacements is on everyone’s radars. Be on the lookout for early stage biotech plays in this space.
Stay tuned — some very big things are on the horizon!
For Tomorrow’s Trends Today,
Ray Blanco
for The Daily Reckoning
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