Paul Mampilly says that the field of biotech presents investors with a way to make huge gains investing in companies that are using cutting-edge science to treat diseases. The field of medicine has been rapidly expanding this century and there have been a number of incredible advances and new ways to treat disease. There is now precision medicine, exciting new cancer treatments, ways to safely transplant organs, creating new organs from stem cells, and using 3D printing in a clinical format.
— Paul Mampilly (@MampillyGuru) September 27, 2018
As a result of all of this activity there has been a great increase in the number of clinical trials, Paul Mampilly says. Back in 2010, there were 1,140 clinical trials underway in the United States. In 2014 there were 10,854, in 2016 19,485, and in 2018 there are 29,495 clinical trials underway. Through August 21st of this year, the Food and Drug Administration had approved 129 new products that successfully completed their clinical trials. That is a historically high number and shows that the biotech industry is really booming.
As Paul Mampilly relates, a clinical trial can take up to 12 years to be completed. Each one goes through several phases and as each one ends the results are gone over and evaluated. If the results merit further development than the treatment moves on to its next phase. Once the drug clears the last phase, called the clinical trial, it is submitted to the FDA for their approval. If the FDA gives their ok the treatment is then put on the market for sale.
Paul Mampilly says that by following a drug as it makes its way through the different phases of development there are multiple opportunities to invest in the company that is studying it. Most biotech firms have one big product they are researching and their fate is tied to it. He says big money can be made and it happens all the time. He points to ProQR which released some good trial results that ended up increasing this company’s stock by an amazing 121 percent in just one single day.
Learn More: dailyreckoning.com/author/pmampilly/