The biotech industry could be described as the stock market’s roulette wheel. While nearly 90% of all biotech stocks are losing money and the vast majority of clinical trials will end in failure, a clinical win could result in investors getting a return many times over on their original investments.
For instance, Pharmacyclics, which is now part of AbbVie, was valued at just $0.57 per share during the depths of the Great Recession. However, Pharmacyclics, in combination with Johnson & Johnson’s pharmaceutical subsidiary Janssen, developed the blood cancer blockbuster Imbruvica.
