How To Invest: Biotechs Can Make Huge Gains But Have Unique Risks

Blockhead10-11

There are plenty of great growth stocks within IBD's biotechnology industry group. Investors have heard legendary stories of stocks like Genentech running up 300% in the 1980s or Amgen (AMGN) ...

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嗣舒
10-12
嗣舒
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{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2474093237?lang=en_US&edition=fundamental","thumbnail":"https://www.investors.com/wp-content/uploads/2017/11/stock-biotech-05-adobe-150x150.jpg","is_english":true,"pubTime":"2024-10-11 20:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2474093237","market":"hk","top_or_hot":-1,"title":"How To Invest: Biotechs Can Make Huge Gains But Have Unique Risks","media":"Blockhead","content":"<div>\n<p>There are plenty of great growth stocks within IBD's biotechnology industry group. Investors have heard legendary stories of stocks like Genentech running up 300% in the 1980s or Amgen (AMGN) ...</p>\n\n<a href=\"https://www.investors.com/how-to-invest/investors-corner/how-to-invest-biotech-stock-risks/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How To Invest: Biotechs Can Make Huge Gains But Have Unique Risks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow To Invest: Biotechs Can Make Huge Gains But Have Unique Risks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-11 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/how-to-invest/investors-corner/how-to-invest-biotech-stock-risks/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>There are plenty of great growth stocks within IBD's biotechnology industry group. Investors have heard legendary stories of stocks like Genentech running up 300% in the 1980s or Amgen (AMGN) ...</p>\n\n<a href=\"https://www.investors.com/how-to-invest/investors-corner/how-to-invest-biotech-stock-risks/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0889565916.HKD","symbol_name":"FRANKLIN BIOTECHNOLOGY DISCOVERY \"A\" (HKD) ACC","start_time":0,"source_url":"https://www.investors.com/how-to-invest/investors-corner/how-to-invest-biotech-stock-risks/","article_id":"2474093237","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2017/11/stock-biotech-05-adobe-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474093237","pubTimestamp":1728648005,"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"In some cases, biotechs go public without having even a single product on the market.","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0889565916.HKD":"FRANKLIN BIOTECHNOLOGY DISCOVERY \"A\" (HKD) ACC","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU2242652126.USD":"FIDELITY FUNDS GLOBAL DIVIDENDS PLUS \"A\" (USD) INC","BIB":"Ultra纳斯达克生物科","LU1093756168.USD":"FRANKLIN K2 ALTERNATIVE STRATEGIES \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","MRNA":"Moderna, Inc.","BNTX":"BioNTech SE","NVO":"诺和诺德","AMGN":"安进","BK4532":"文艺复兴科技持仓","IE0009355771.USD":"骏利亨德森环球生命科技A Acc","XBI":"SPDR S&P Biotech ETF","LU1093756325.SGD":"FTIF - Franklin K2 Alt Strat Fd A (acc) SGD-H1","LU0122379950.USD":"贝莱德世界健康科学A2","LU0289739699.SGD":"AB INTERNATIONAL HEALTH CARE PORTFOLIO \"A\" (SGD) ACC","NVO.AU":"NOVO RESOURCES CORP-CDI","IE00B2B36J28.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I1\" (USD) INC","LU1061106388.HKD":"BGF WORLD HEALTHSCIENCE \"A2\" (HKDHDG) ACC","LU0320765992.SGD":"FTIF - Franklin Biotechnology Discovery A Acc SGD","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU0109394709.USD":"富兰克林生物科技新领域基金A (acc)","BK4139":"生物科技","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4007":"制药","LU0058720904.USD":"联博国际健康护理基金A","IE00B4R5TH58.HKD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"A2\" (HKD) ACC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","BK4501":"段永平概念","IBB":"生物科技指数ETF-iShares Nasdaq","FDN":"First Trust Dow Jones Internet I","LU2242646821.SGD":"Fidelity Global Dividend Plus A-MINCOME(G)-SGD","BK4568":"美国抗疫概念","BK4550":"红杉资本持仓","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LABU":"三倍做多标普生物-Direxion","LU1057294990.SGD":"Blackrock World Healthscience A2 SGD-H","IE0002141913.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (USD) ACC","BK7104":"黄金","BK4551":"寇图资本持仓","LU2112291526.USD":"BGF WORLD HEALTHSCIENCE \"A4\" (USD) INC","LU1023059063.AUD":"BGF WORLD HEALTHSCIENCE \"A2\" (AUDHDG) ACC","LU1983299246.USD":"SCHRODER ISF HEALTHCARE INNOVATION \"A\" (USD) ACC","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","IE00BJJMRZ35.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (SGDHDG) ACC","BK4581":"高盛持仓","IE00BFTCPJ56.SGD":"Janus Henderson Global Life Sciences A Acc SGD","HLVX":"HilleVax, Inc."},"translate_title":"如何投资：生物技术可以获得巨大收益，但也有独特的风险","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BIB":1,"XBI":1,"NVO.AU":1,"NVO":1,"MRNA":1,"LABU":1,"IBB":1,"HLVX":1,"BNTX":1,"AMGN":1,"FDN":0.63},"content_text":"There are plenty of great growth stocks within IBD's biotechnology industry group. Investors have heard legendary stories of stocks like Genentech running up 300% in the 1980s or Amgen (AMGN) rocketing 600% in the early 1990s.\nWhen the gains look this good, what is keeping this from being the No. 1 industry group in every market cycle? Trouble is, biotech stocks have some unique risks that make them particularly volatile and often harder to trade.\n\n\n\n↑\nX\n\n\n\n\nHow To Buy Stocks: IBD's Four Pillars Of Investing\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nHow To Buy Stocks: IBD's Four Pillars Of Investing\n\n\n\n\nIn some cases, biotechs go public without having even a single product on the market, making them quite speculative investments.\nThe Risks Of Biotechs\nThe biotech industry is flush with stocks on the cutting edge of science whose aim is to eradicate disease, increase life expectancy and vastly improve quality of life. The time and resources that it takes to bring these drugs and treatments to fruition means most companies are only producing one or two drugs at a time. All your eggs are in one or two baskets.\nIf something goes wrong with that product, look out. The floor collapses from underneath and the stock's price plummets, sometimes never to recover. Worst of all, you can't prepare for a bad drug trial or an FDA rejection. They don't occur on a schedule like earnings reports do.\nIt's worth mentioning that this type of risk extends to others in the medical sector, such as the ethical drugs group, which is also subject to regulatory approval and the risks of drug trials.\nHow To Trade Biotech Stocks\nThere are a few things that investors can do to mitigate the risk of trading biotech stocks.\nOne way is to go with exchange traded funds, which bundle dozens of stocks in the industry and can mitigate the risk of a single stock having a meltdown.\nYour two most liquid options are the SPDR S&P Biotech ETF (XBI) and the iShares Biotech ETF (IBB). Investors with high conviction can even trade the double-weighted ProShares Ultra Nasdaq Biotech ETF (BIB) or triple-weighted Direxion S&P Biotech Bull (LABU).\nBe warned, the double- and triple-leveraged ETFs can be backbreakers, exacerbating your losses if the industry makes a steep downturn.\nA second tip: smart stock selection. Start with success and choose from leading stocks with a new or revolutionary product. The biggest winners in any industry are the ones who are changing the game, and the same is true of biotechs. Focus on companies with strong sales growth.\nAmgen changed patient care in chemotherapy. Syntex was the first company to submit a patent for a birth control pill. Moderna (MRNA) and BioNTech (BNTX) were huge winners in 2020 and 2021 because of Covid-19 vaccines.\nAnother tip on stock selection: Avoid stocks once they reach Phase 3 trials. Wall Street prefers stocks with positive Phase 2 data. In Phase 3, as the sample size increases, so does the chance of encountering dangerous side effects. Larger sample sizes can also reveal a drop in statistically meaningful positive responses.\nNovo Nordisk & HilleVax Lessons\nLast July, Novo Nordisk (NVO) stock was acting just fine. Then the Netherlands government decided to not cover the company's Wegovy weight-loss drug under the country's basic insurance plan. The stock sold off for two days, sending it below the 50-day moving average.\nOn Sept. 20, results from a trial of an experimental obesity pill were disappointing. The stock fell 5.5% and continued to trend lower.\nHilleVax (HLVX) is a small-cap biotech developing novel vaccines. The stock was forming a base this year until some bad news came out on July 8. Its experimental norovirus vaccine failed trials. The stock plummeted to $1.64, falling nearly 90% from the day prior. The stock remains around 1.75 a share.\nYOU MAY ALSO LIKE:\nThe Four Pillars Of The IBD Methodology\nRisk Management In The Stock Market: How Much Money To Invest\nIBD Live: Learn And Analyze Growth Stocks With The Pros\nGet Free IBD Newsletters: Market Prep | Tech Report | How To Invest","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":359181164835000,"gmtCreate":1728698717312,"gmtModify":1728698869527,"author":{"id":"4115205500438802","authorId":"4115205500438802","name":"嗣舒","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"authorIdStr":"4115205500438802","idStr":"4115205500438802"},"htmlText":"Share your opinion about this news…","listText":"Share your opinion about this news…","text":"Share your opinion about this news…","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/359181164835000","repostId":2474093237,"repostType":2,"repost":{"id":"2474093237","pubTimestamp":1728648005,"share":"https://ttm.financial/m/news/2474093237?lang=&edition=fundamental","pubTime":"2024-10-11 20:00","market":"hk","language":"en","title":"How To Invest: Biotechs Can Make Huge Gains But Have Unique Risks","url":"https://stock-news.laohu8.com/highlight/detail?id=2474093237","media":"Blockhead","summary":"In some cases, biotechs go public without having even a single product on the market.","content":"<html><body><div>\n<p>There are plenty of great growth stocks within IBD's biotechnology industry group. Investors have heard legendary stories of stocks like Genentech running up 300% in the 1980s or <strong>Amgen</strong> (AMGN) rocketing 600% in the early 1990s.</p>\n<p>When the gains look this good, what is keeping this from being the No. 1 industry group in every market cycle? Trouble is, biotech stocks have some unique risks that make them particularly volatile and often harder to trade.</p>\n<span>\n<span>\n<span jw-video-key=\"FczkHzgb\" vid-authors=\"RACHEL FOX\" vid-cat=\"Investor's Corner\" vid-date=\"09/26/2024\" vid-date-tmsp=\"1727347777\" vid-dom-id=\"9413049-67091849b73b3\" vid-id=\"9413049\" vid-image=\"https://www.investors.com/wp-content/uploads/2024/09/FczkHzgb-640x360.jpg\" vid-name=\"How To Buy Stocks: IBD's Four Pillars Of Investing\" vid-repeat=\"1\" vid-top=\"\" vid-url=\"https://content.jwplatform.com/manifests/FczkHzgb.m3u8\" vid-width=\"100\">\n<span>↑</span>\n<span>X</span>\n<span>\n<span></span>\n<div>\n<div>\nHow To Buy Stocks: IBD's Four Pillars Of Investing\n</div>\n<div>\nSee All Videos\n</div>\n</div>\n</span>\n<span>\n<span>NOW PLAYING</span>\n<span>How To Buy Stocks: IBD's Four Pillars Of Investing</span>\n</span>\n</span>\n</span>\n</span>\n<p>In some cases, biotechs go public without having even a single product on the market, making them quite speculative investments.</p>\n<h2>The Risks Of Biotechs</h2>\n<p>The biotech industry is flush with stocks on the cutting edge of science whose aim is to eradicate disease, increase life expectancy and vastly improve quality of life. The time and resources that it takes to bring these drugs and treatments to fruition means most companies are only producing one or two drugs at a time. All your eggs are in one or two baskets.</p>\n<p>If something goes wrong with that product, look out. The floor collapses from underneath and the stock's price plummets, sometimes never to recover. Worst of all, you can't prepare for a bad drug trial or an FDA rejection. They don't occur on a schedule like earnings reports do.</p>\n<p>It's worth mentioning that this type of risk extends to others in the medical sector, such as the ethical drugs group, which is also subject to regulatory approval and the risks of drug trials.</p>\n<h2>How To Trade Biotech Stocks</h2>\n<p>There are a few things that investors can do to mitigate the risk of trading biotech stocks.</p>\n<p>One way is to go with exchange traded funds, which bundle dozens of stocks in the industry and can mitigate the risk of a single stock having a meltdown.</p>\n<p>Your two most liquid options are the SPDR S&amp;P Biotech ETF (XBI) and the <a href=\"https://laohu8.com/S/EEMA\">iShares</a> Biotech ETF (IBB). Investors with high conviction can even trade the double-weighted ProShares Ultra Nasdaq Biotech ETF (BIB) or triple-weighted Direxion S&amp;P Biotech Bull (LABU).</p>\n<p>Be warned, the double- and triple-leveraged ETFs can be backbreakers, exacerbating your losses if the industry makes a steep downturn.</p>\n<p>A second tip: smart stock selection. Start with success and choose from leading stocks with a new or revolutionary product. The biggest winners in any industry are the ones who are changing the game, and the same is true of biotechs. Focus on companies with strong sales growth.</p>\n<p>Amgen changed patient care in chemotherapy. Syntex was the first company to submit a patent for a birth control pill. <strong>Moderna</strong> (MRNA) and <strong>BioNTech</strong> (BNTX) were huge winners in 2020 and 2021 because of Covid-19 vaccines.</p>\n<p>Another tip on stock selection: Avoid stocks once they reach Phase 3 trials. Wall Street prefers stocks with positive Phase 2 data. In Phase 3, as the sample size increases, so does the chance of encountering dangerous side effects. Larger sample sizes can also reveal a drop in statistically meaningful positive responses.</p>\n<h2>Novo Nordisk &amp; HilleVax Lessons</h2>\n<p>Last July, <strong>Novo Nordisk</strong> (NVO) stock was acting just fine. Then the Netherlands government decided to not cover the company's Wegovy weight-loss drug under the country's basic insurance plan. The stock sold off for two days, sending it below the 50-day moving average.</p>\n<p>On Sept. 20, results from a trial of an experimental obesity pill were disappointing. The stock fell 5.5% and continued to trend lower.</p>\n<p><strong>HilleVax</strong> (HLVX) is a small-cap biotech developing novel vaccines. The stock was forming a base this year until some bad news came out on July 8. Its experimental norovirus vaccine failed trials. The stock plummeted to $1.64, falling nearly 90% from the day prior. The stock remains around 1.75 a share.</p>\n<p><strong>YOU MAY ALSO LIKE:</strong></p>\n<p>The Four Pillars Of The IBD Methodology</p>\n<p>Risk Management In The Stock Market: How Much Money To Invest</p>\n<p>IBD Live: Learn And Analyze Growth Stocks With The Pros</p>\n<p>Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest</p>\n</div></body></html>","source":"investor_business_daily_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How To Invest: Biotechs Can Make Huge Gains But Have Unique Risks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow To Invest: Biotechs Can Make Huge Gains But Have Unique Risks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-11 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/how-to-invest/investors-corner/how-to-invest-biotech-stock-risks/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>There are plenty of great growth stocks within IBD's biotechnology industry group. Investors have heard legendary stories of stocks like Genentech running up 300% in the 1980s or Amgen (AMGN) ...</p>\n\n<a href=\"https://www.investors.com/how-to-invest/investors-corner/how-to-invest-biotech-stock-risks/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://www.investors.com/wp-content/uploads/2017/11/stock-biotech-05-adobe-150x150.jpg","relate_stocks":{"LU0889565916.HKD":"FRANKLIN BIOTECHNOLOGY DISCOVERY \"A\" (HKD) ACC","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU2242652126.USD":"FIDELITY FUNDS GLOBAL DIVIDENDS PLUS \"A\" (USD) INC","BIB":"Ultra纳斯达克生物科","LU1093756168.USD":"FRANKLIN K2 ALTERNATIVE STRATEGIES \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","MRNA":"Moderna, Inc.","BNTX":"BioNTech SE","NVO":"诺和诺德","AMGN":"安进","BK4532":"文艺复兴科技持仓","IE0009355771.USD":"骏利亨德森环球生命科技A Acc","XBI":"SPDR S&P Biotech ETF","LU1093756325.SGD":"FTIF - Franklin K2 Alt Strat Fd A (acc) SGD-H1","LU0122379950.USD":"贝莱德世界健康科学A2","LU0289739699.SGD":"AB INTERNATIONAL HEALTH CARE PORTFOLIO \"A\" (SGD) ACC","NVO.AU":"NOVO RESOURCES CORP-CDI","IE00B2B36J28.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I1\" (USD) INC","LU1061106388.HKD":"BGF WORLD HEALTHSCIENCE \"A2\" (HKDHDG) ACC","LU0320765992.SGD":"FTIF - Franklin Biotechnology Discovery A Acc SGD","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU0109394709.USD":"富兰克林生物科技新领域基金A (acc)","BK4139":"生物科技","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4007":"制药","LU0058720904.USD":"联博国际健康护理基金A","IE00B4R5TH58.HKD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"A2\" (HKD) ACC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","BK4501":"段永平概念","IBB":"生物科技指数ETF-iShares Nasdaq","FDN":"First Trust Dow Jones Internet I","LU2242646821.SGD":"Fidelity Global Dividend Plus A-MINCOME(G)-SGD","BK4568":"美国抗疫概念","BK4550":"红杉资本持仓","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LABU":"三倍做多标普生物-Direxion","LU1057294990.SGD":"Blackrock World Healthscience A2 SGD-H","IE0002141913.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (USD) ACC","BK7104":"黄金","BK4551":"寇图资本持仓","LU2112291526.USD":"BGF WORLD HEALTHSCIENCE \"A4\" (USD) INC","LU1023059063.AUD":"BGF WORLD HEALTHSCIENCE \"A2\" (AUDHDG) ACC","LU1983299246.USD":"SCHRODER ISF HEALTHCARE INNOVATION \"A\" (USD) ACC","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","IE00BJJMRZ35.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (SGDHDG) ACC","BK4581":"高盛持仓","IE00BFTCPJ56.SGD":"Janus Henderson Global Life Sciences A Acc SGD","HLVX":"HilleVax, Inc."},"source_url":"https://www.investors.com/how-to-invest/investors-corner/how-to-invest-biotech-stock-risks/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2474093237","content_text":"There are plenty of great growth stocks within IBD's biotechnology industry group. Investors have heard legendary stories of stocks like Genentech running up 300% in the 1980s or Amgen (AMGN) rocketing 600% in the early 1990s.\nWhen the gains look this good, what is keeping this from being the No. 1 industry group in every market cycle? Trouble is, biotech stocks have some unique risks that make them particularly volatile and often harder to trade.\n\n\n\n↑\nX\n\n\n\n\nHow To Buy Stocks: IBD's Four Pillars Of Investing\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nHow To Buy Stocks: IBD's Four Pillars Of Investing\n\n\n\n\nIn some cases, biotechs go public without having even a single product on the market, making them quite speculative investments.\nThe Risks Of Biotechs\nThe biotech industry is flush with stocks on the cutting edge of science whose aim is to eradicate disease, increase life expectancy and vastly improve quality of life. The time and resources that it takes to bring these drugs and treatments to fruition means most companies are only producing one or two drugs at a time. All your eggs are in one or two baskets.\nIf something goes wrong with that product, look out. The floor collapses from underneath and the stock's price plummets, sometimes never to recover. Worst of all, you can't prepare for a bad drug trial or an FDA rejection. They don't occur on a schedule like earnings reports do.\nIt's worth mentioning that this type of risk extends to others in the medical sector, such as the ethical drugs group, which is also subject to regulatory approval and the risks of drug trials.\nHow To Trade Biotech Stocks\nThere are a few things that investors can do to mitigate the risk of trading biotech stocks.\nOne way is to go with exchange traded funds, which bundle dozens of stocks in the industry and can mitigate the risk of a single stock having a meltdown.\nYour two most liquid options are the SPDR S&P Biotech ETF (XBI) and the iShares Biotech ETF (IBB). Investors with high conviction can even trade the double-weighted ProShares Ultra Nasdaq Biotech ETF (BIB) or triple-weighted Direxion S&P Biotech Bull (LABU).\nBe warned, the double- and triple-leveraged ETFs can be backbreakers, exacerbating your losses if the industry makes a steep downturn.\nA second tip: smart stock selection. Start with success and choose from leading stocks with a new or revolutionary product. The biggest winners in any industry are the ones who are changing the game, and the same is true of biotechs. Focus on companies with strong sales growth.\nAmgen changed patient care in chemotherapy. Syntex was the first company to submit a patent for a birth control pill. Moderna (MRNA) and BioNTech (BNTX) were huge winners in 2020 and 2021 because of Covid-19 vaccines.\nAnother tip on stock selection: Avoid stocks once they reach Phase 3 trials. Wall Street prefers stocks with positive Phase 2 data. In Phase 3, as the sample size increases, so does the chance of encountering dangerous side effects. Larger sample sizes can also reveal a drop in statistically meaningful positive responses.\nNovo Nordisk & HilleVax Lessons\nLast July, Novo Nordisk (NVO) stock was acting just fine. Then the Netherlands government decided to not cover the company's Wegovy weight-loss drug under the country's basic insurance plan. The stock sold off for two days, sending it below the 50-day moving average.\nOn Sept. 20, results from a trial of an experimental obesity pill were disappointing. The stock fell 5.5% and continued to trend lower.\nHilleVax (HLVX) is a small-cap biotech developing novel vaccines. The stock was forming a base this year until some bad news came out on July 8. Its experimental norovirus vaccine failed trials. The stock plummeted to $1.64, falling nearly 90% from the day prior. The stock remains around 1.75 a share.\nYOU MAY ALSO LIKE:\nThe Four Pillars Of The IBD Methodology\nRisk Management In The Stock Market: How Much Money To Invest\nIBD Live: Learn And Analyze Growth Stocks With The Pros\nGet Free IBD Newsletters: Market Prep | Tech Report | How To Invest","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2474093237"}