2 Biotech Stocks Poised to Soar in 2020
Biotechnology has proved to be one of the most fruitful areas when it comes to stocks that quickly double or even triple in value seemingly overnight. The main reason is that the stock market simply cannot predict the success (or failure) of clinical trials with any degree of accuracy whatsoever.
Most industry experts, for instance, thought Amarin's cardiovascular outcomes trial, Reduce-It, for its prescription omega-3 treatment Vascepa would be a failure. Instead, the drug blew past expectations to become the first-ever omega-3 treatment to show a clear-cut cardiovascular benefit in a placebo-controlled trial.
Similarly, Wall Street was caught flat-footed when Aurinia Pharmaceuticals' lupus nephritis candidate voclosporin hit the mark in a pivotal trial earlier this month. The point is that valuations in biotech are constantly in flux due to the unpredictability inherent in many of these businesses.
Source Fool.com
