3 Biotech Stocks That Could Make Your Summer Unforgettable
If you want to do well with biotech stocks, trade the anticipation of news.
Look at Structure Therapeutics (NASDAQ:GPCR), for example.
On March 8, I learned that GPCR would report Phase 2a 12-week obesity drug data in the second quarter of the year. Knowing that Phase 1 trials had positive results, I anticipated that Phase 2 results could be just as solid — all as we got closer to the data being released on June 3. At the time, GPCR traded at about $36.80.
By June 3, the stock would hit a high of $62.74, with the company posting positive top-line 2a data. To make money, all I had to do was jump into the stock when I first learned that Phase 2b study results would be released in June and wait.
Typically, you’d want to just jump into an anticipation trade early and jump out before the actual catalyst to avoid a potential sell-the-news reaction.
In this case, the potential reward outweighed the risk with biotech stocks.
Better, we can trade biotech anticipation with nearing trial results, PDUFA (Prescription Drug User Fee Act) dates, U.S. FDA advisory panel dates and FDA decision dates. Granted, the strategy isn’t perfect, but it can help get you into potentially explosive opportunities early.
Here are three other biotech stocks you may want to keep an eye on.
https://investorplace.com/2024/07/3-biotech-stocks-that-could-make-your-summer-unforgettable/