The visibility is increased and the risk is reduced as these products progress through the regulatory cycle. Opportunities are created because the investment community often ignores this progress as it happens. Investors get excited when a prominent medical publication publishes results, or the product passes a major regulatory hurdle. However, the real value changes as clinical trials prove that the drug actually works. But investing in these stocks is further complicated by the speed with which events get discounted.
Scientific discovery takes long periods of trial and error.
Every day science is discovering new rules for biotechnology. Keep in mind of Aesop's fable about the tortoise and the hare, the tortoise prevailed because he took a slow and sure approach to running the race. Thus, those in the biotechnology industry take the tortoise's approach to win the race. To invest in biotech companies means that investing in these companies at times requires a great deal of patience and a long-term outlook. Through your patience, perseverance and an investment strategy that fits your investment needs and desires, your growth investing in medical technology should be very profitable for many years to come.