| Profitable biotech companies based on last quarter's financials | Of the over 500 biotech companies that are currently in the BiotechWatch database, only approximately 70 were profitable in the last quarter. Typically these companies have a product or products on the market and are generating revenues. Some biotech investors may find these companies desirableinvestment opportunities feeling that they are more stable and can be measured by traditional investment parameters. |
| Well financed biotech companies | Biotechnology companies are notorious for spending large amounts of money before developing their first product. Biotech companies with several years of cash on hand are in a better position in the marketplace and are more likely to complete development of a product. BiotechWatch has chosen 3 years of cash as a benchmark of more stable, better managed biotechnology companies. |
| Biotech companies that are relatively lower risk given their cash position and pipeline | These biotech companies have adequate financial resources, a high market capitalization and several products in clinical development or on the market. These companies may represent good investment opportunities in the biotechnology sector for the biotech investor looking for a relatively stable investment with moderate growth potential. |
| Biotech companies that are relatively higher risk, but potentially higher reward | These micro cap (very small in terms of market valuation) biotechcompanies have products in the late stages of clinical development (either in phase 3 clinical trials or pending review and approval by the FDA) and at least 6 months of cash on hand. These biotech companies have the potential for dramatic growth in valuation if they receive FDA approval or achieve clinical success. We would consider these biotech companies as relatively high risk investments, as negative news will result in marked stock price declines. |
| Biotech companies selling at or near cash | These are biotech companies that are trading at a very low technology or enterprise values. In other words, biotech companies selling close to their cash levels. Such biotech companies may be viewed as potentially undervalued or perhaps as having low downside risk. |
| Potentially undervalued biotech companies trading in the bottom half of their 52 week price range with products in late-stage clinical trials | These are biotech companies that are trading in the lower half of their 52 week range, but have a product either in phase 3development or pending approval by the FDA. These biotech companies also have at least 2 years worth of cash (based on the last quarter's spending and current cash reserves) and a market cap greater than $50 million. |
| Biotech companies with drugs that are pending FDA approval | Biotechnology companies tend to have increased trading activity around the time that they are awaiting FDA approval for a product. Biotech companieswith promising products tend to trade up in anticipation of these events. By selecting biotech stocks of companies that are awaiting FDA approval, an investor may be able to take advantage of this trading pattern. |
| Biotech companies with a Phase 3 product and market cap below $250M | These are biotech companies that are small to moderate in size that have a least one product in Phase 3 clinical trials. |
| Biotech companies with an expected clinical milestone in the next year | As most biotechnology companies do not have any products on the market or meaningful revenues, company valuations are often driven by news or milestone events. As milestone events approach, such as the announcement of clinical trial results, a company's stock may trade up in anticipation. BiotechWatch provides a search to identify the companies with known milestones that are expected in the next 12 months. As some companies do not publicly announce the timing of all milestone events, this search parameter may have some limitations. |
| Biotech companies trading within 20% of the 52 week low | Often the performance of a biotech stock is related to its previous trading history. This search looks at a 52 week low values to identify companies that are trading within 20% of that number. Stocks trading within 20% of their 52 week low may be more likely to have upward movement in their value if past performance is any guide. |
| Biotech companies with a stock price between $0 to $2 | Investors often want to buy biotech stocks within a certain price range. BiotechWatch provides an easy search to identify biotech stocks trading within specific price ranges ($0 to $2). |
| Biotech companies with a stock price between $2 to $5 | Investors often want to buy biotech stocks within a certain price range. BiotechWatch provides an easy search to identify biotech stocks trading within specific price ranges ($2 to $5). |
| Biotech companies with a stock price between $5 to $10 | Investors often want to buy biotech stocks within a certain price range. BiotechWatch provides an easy search to identify biotech stocks trading within specific price ranges ($5 to $10). |
| Biotech companies with a stock price between $10 to $30 | Investors often want to buy biotech stocks within a certain price range. BiotechWatch provides an easy search to identify biotech stocks trading within specific price ranges ($10 to $30). |
| Biotech companies with a stock price over $30 | Investors often want to buy biotech stocks within a certain price range. BiotechWatch provides an easy search to identify biotech stocks trading within specific price ranges (over $30). |
| Biotech stocks that trade larger volumes or are more liquid | Biotech investors often prefer stocks that are easily traded and have comparatively larger volumes of shares traded per day. These are referred to as liquid investments. BiotechWatch provides a search to easily identify companies that trade a minimum of500,000 shares per day. Given the relative illiquidity of some biotechnology stocks, this represents approximately 25% of the companies in the BiotechWatch database. |
| Micro market cap biotech stocks | Biotech investors may prefer to invest in biotech companies that are trading within a specific market capitalization range. In the case of micro market cap biotech companies (under $60 million), expectations may be that a biotech company is undervalued and would have the best chances for large returns with positive news. BiotechWatch's definitions of micro, low, moderate and large market cap values are specific to the biotechnology sector. |
| Low market cap biotech stocks | Biotech investors may prefer to invest in biotech companies that are trading within a specific market capitalization range. Biotech companies with low market caps (between $60 to $200 million), are in the lower tier of companies and have a chance of entering the next tier of biotech companies on positive news. BiotechWatch's definitions of micro, low, moderate and large market cap values are specific to the biotechnology sector. |
| Moderate market cap biotech stocks | Biotech investors may prefer to invest in biotech companies that are trading within a specific market capitalization range. Biotech companies with moderate market caps (between $200 to $500 million), are in the middle tier companies and have a chance of entering the top tiers of biotech companies on positive news. BiotechWatch's definitions of micro, low, moderate and large market cap values are specific to the biotechnology sector. |
| Large market cap biotech stocks | Biotech investors may prefer to invest in biotech companies that are trading within a specific market capitalization range. Biotech companies with large market caps (over $500 million), may be viewed as more stable and investing in these biotech companies allows an investor to participate in the biotechnology while minimizing some of the associated risk. |
