When taking a look at the history of a biotech stock's valuation, you may have noticed certain inflection points that drastically impacted stock price, especially for smaller companies. What is driving these inflection points? And when thinking of investing in a biotech stock, what should you be looking out for that could impact the price?

Today, we would like to hone in on a unique aspect of this industry - clinical trial readouts, and what they mean for investors. We will take you through each step of the clinical trial process, and what to watch out for when making investment decisions.

Any additional questions? Any specific topics you would like for us to profile? Please leave a comment below.

Structure:
Preface (Preclinical Trials)
Phase 1 Trials
Phase 2 Trials
Phase 3 Trials
Conclusion

► Website (Check us out!): https://www.wx.capital/
► Facebook:   / wxcapitalus  
► Instagram:   / wx.capital  
► Twitter:   / wxcapital  
► Linkedin:   / wxca.  .
► Seeking Alpha: https://seekingalpha.com/user/48516256/
► Stocktwits: https://stocktwits.com/WX_Capital

► Demystifying Biotech Series:    • Playlist  

The video also touches upon FDA designations and PDUFA dates. Here's a summary of what I learned and what might be helpful for you.

Preclinical Trials: these trials don't impact a company's evaluation that much because results from animals don't always translate to results from humans.

Phase 1 Trials: generally, there isn't much upside in this phase. That's because if the results are positive, it still needs to pass the other phases and thus stays in the status quo. If they're negative, you might be able to expect a negative evaluation of the company and it's stock. However, if the results are positive in patients and for a hard-to-treat disease, you can expect an upside for investors.

Phase 2 Trials: These almost always have human patients. Furthermore, these trials are the most difficult barrier to get by so positive results will clear a major hurdle. These trials will have a large effect on a company's evaluation.

Phase 3 Trials: These trials are the single biggest driver for a company's stock price. If they get past this stage, these companies get assigned a PDUFA date and have the potential to get their drugs approved and on the market.

-------------------------------------------------------------------------------------------------------------------------
Who we are:

WX Capital is led by ex-life science consultants and ex-bankers who have attained over 35% annually by investing in biotech stocks.

We've decided to share our biotech expertise through our affordable subscription service, where members receive real-time stock trades, market updates, and exclusive access to stock diligence. Join today and get a leg up in the market! Sign-up today for our free weekly newsletter on market trends and stock performance. Or try out a free trial to experience everything we offer!

► Join Here: https://www.wx.capital/subscribe

DISCLAIMER:

This content is strictly for educational purposes, and should not be taken as financial and or investment advice. The publisher of this video assumes no responsibility for your trading performance as a result of watching one of these videos.

#DemystifyingBiotech #ClinicalTrials #InvestingTips