If you’re looking for stocks that offer unusual growth opportunities, clinical-stage biotechs are fertile ground. Even among this select group, though, there are only a handful of companies that can realistically transform an initial investment of say $10,000 into a small fortune.
The “trick,” if you will, is to identify companies that are either developing, or have recently launched, franchise-level drugs that will allow them to build out a diverse product portfolio over time. The problem is that small companies with promising drugs -- experimental or otherwise -- tend to be bought out long before their full value is realized. What’s left over are companies with drugs that tend to have substantial clinical or regulatory hurdles to clear, making them high-risk investing vehicles.
