Investing in biotech stocks - My experience so far

BrockStoker

Voyager2002 said:

Social media are saying that this morning SRNE received a US patent for a fluid delivery apparatus. The only article about this is behind a pay-wall: any idea what it is?

And the share price has pulled back somewhat: is that likely to be profit-taking after yesterday, or has something happened?

Not 100% sure what the patent is for, but on the YF board someone said "Patent is for the Sofi micro Needle infusion system pointed toward arthritis". Got some thumbs down for that so not sure if it's complete rubbish or not.

Edit to add: The above sounds wrong. Still not exactly sure (going through it now), but here is a link to the patent:

http://patft.uspto.gov/netacgi/nph-Parser?Sect2=PTO1&Sect2=HITOFF&p=1&u=/netahtml/PTO/search-bool.html&r=1&f=G&l=50&d=PALL&RefSrch=yes&Query=PN/10905822

Edit again to add: After having a better look through the patent, "micro Needle infusion system" sounds about right.

I think it's mostly profit taking going on right now. I certainly have not heard any bad news. With all that is going on it's bound to be very volatile.

https://finance.yahoo.com/news/reddit-army-declares-biowar-shorted-182223419.html

Here's a good read about SRNE which was posted on the MB:

https://insiderfinancial.com/sorrento-stock-the-mayo-clinic-news-is-a-big-deal/180416/

BrockStoker

Posted by Paul (SRNE YH MB):

STI-2020 / COVI-AMG Phase II published on FDA site for mild covid and 500 participants. This will ramp fast as a multi-center study (US and Brazil maybe). Treatment is 1 shot at 40, 100, or 200mg or placebo (may be fewer placebo than 1:1:1:1 allocation

Edit to add more:

FDA Filing for a SINGLE INJECTION
Study to Evaluate a Single Dose of STI-2020 (COVI-AMG™) in Adults With Mild COVID-19 Symptoms
This is a multi-center, randomized, double-blind study designed to investigate the safety, pharmacokinetic (PK) profile and efficacy of a SINGLE INJECTION of COVI-AMG in outpatient adults with mild COVID-19 symptoms. Subjects will be followed for approximately 70 days post dosing.

adindas

Something to consider in Genome Sector Repare Therapeutics Inc. (RPTX). Genome will become the fastest growing sector based on many Wall street Analysts.

RPTX is focusing on DNA Damage & Genome Instability, so they will have the ability to address previously untargetable tumor biology, including loss of function mutations

Currently making a dip. Most analysts have sent a buy signal with Average Price target higher than the current price. I just notice ARK invest have been keep buying this stock since a few months ago.

Also another one to consider is Novartis AG (NVS). Again it is currently making a dip and ARK invest have been keep buying this stock. Most analysts have sent a buy signals with Average Price target higher than the current price.

In my personal opinion it is good if you enter in the next support level of around $30.

Keep in mind Like any other Biotech stocks It is very risky, you miss the news, you lose the money. I myself do not invest the biotech stock for a long run. Or If I did at least I would need to get my principal back and just keep holding the one that I do not risk my money at all. I normally do swing with biotech stock, buy Low and sell high. I already did its multiple times with Arrowhead (ARWR).

In my personal observation, there is a difference between Biotech Stock penny stocks and technology penny stocks. It is not uncommon for Biotech Stock penny stocks to turn to 3-4X only that later it will be back to square one in 1 or more years. For The technology penny stock once they take off, in many cases they will not be looking back.

I will only consider investing in biotech stock for long run when I started investing that biotech stock and expecting them to become a monster, put a small amount of money when there were stil a penny stock and have taken off, not because of pump and dumb. Once they have taken off I put a stop loss and forget it, doing this I will never lose my principal.

In this particular case the risk / reward are overwhelmingly in favour of reward. If you invest less than £100, you are risking £100, but with a stock with a good potential it might turn to become £1,000+. Risk/Reward 1 to 10+. You could also consider taking all of your principal when they have turned to become 2X.  In this case no risk at all.

Alternatively I will consider investing in Biotech stock for a long run in ETF such as ARKG.

scroogemcduck2

Is there any way of buying ARKG from the UK? Or is there a similar alternative that is available?

adindas

scroogemcduck2 said:

Is there any way of buying ARKG from the UK? Or is there a similar alternative that is available?

It is already answered here
https://forums.moneysavingexpert.com/discussion/6083125/investing-in-biotech-stocks-my-experience-so-far/p29

scroogemcduck2

Sorry, my brain managed to mislay having read that!

BrockStoker

@adindas

I think what you say is true of some biotech stocks - they are certainly more volatile - but in some cases I think holding long term, as long as you can stand the volatility, is a better option (if you want to catch the big up spikes).

I'd definitely recommend buying and holding ARWR over the next few months at least.

I agree with what you said about trying to find a good biotech early, when it's still a penny stock. So far the smaller penny stocks have probably been the most lucrative for me (if you exclude ARWR) - I wish I'd had the confidence to have bought more when they were cheap and hold on to them longer. BCRX which I bought as low as $2.87 has been trading close to $12 recently, and looks like it's got plenty more to run. I paid $1.80 for CRIS which is now $10.55, and $3.34 for GRTS (currently $16.38). Those are the three cheapest shocks I have ever bought, apart from EVFM and AMRS (both of which are ticking along nicely, especially the latter today!).

RPTX and NVS are on my radar, although I will have a closer look since you mentioned them. Hopefully I should have some new ISA money to play with soon, and it's always good to have some options that you have already started to get to know.

Out of interest, how many stocks are you holding at any one time/currently? 

adindas

BrockStoker said:

@adindas

I think what you say is true of some biotech stocks - they are certainly more volatile - but in some cases I think holding long term, as long as you can stand the volatility, is a better option (if you want to catch the big up spikes).

I'd definitely recommend buying and holding ARWR over the next few months at least.

I agree with what you said about trying to find a good biotech early, when it's still a penny stock. So far the smaller penny stocks have probably been the most lucrative for me (if you exclude ARWR) - I wish I'd had the confidence to have bought more when they were cheap and hold on to them longer. BCRX which I bought as low as $2.87 has been trading close to $12 recently, and looks like it's got plenty more to run. I paid $1.80 for CRIS which is now $10.55, and $3.34 for GRTS (currently $16.38). Those are the three cheapest shocks I have ever bought, apart from EVFM and AMRS (both of which are ticking along nicely, especially the latter today!).

RPTX and NVS are on my radar, although I will have a closer look since you mentioned them. Hopefully I should have some new ISA money to play with soon, and it's always good to have some options that you have already started to get to know.

Out of interest, how many stocks are you holding at any one time/currently? 

I am doing both trading and investing. Most of my lucrative trading are in SPAC stocks near NAV. and I sell it close to merger date. I do not count how many stocks I am holding as it keep changing but it is somewhere around 50+ stocks. I liquidate most of the SPAC stock when they are about to merge.

I know ARWR is good for long holding but the problem here is the opportunity cost, as I can not add anymore money on my ISA account in this tax years. Also I have been trading ARWR many times and I have not lost money trading them sofar as I do not sell stock when they are in red. Instead I have made profit trading them.

I will reenter again when they are making a dip.

BrockStoker

Knowing ARWR there will be a dip following great news.

So we just had the earnings conference call, and I would say the news is verging on "great". Accordingly the share price is down in AH trading.

Here are some CC highlights:

-- Expecting to have Proof Of Concept in muscle tissue by end of summer. This is a big one - no one has achieved this before.

-- Expecting to get first phase 3 trial underway before end of Q2.

-- Plans for lung and solid tumor franchises. Hinting at deals in the works I guess?

-- Open label trials of APOC3 and ANG3 to begin 2nd half 2021.

-- Cash burn 200-250 million every year. $700 million in cash and investments.

Saving the best news for last..

HIF2a data due in the next couple of months. That's the first cancer biopsy data which everyone can't wait to see. Keep in mind these are patients with a very poor prognosis, who have tried everything else, and under normal circumstances, at least some would not have been expected to live this long into the trial (4 months now I think?). So the fact we have not heard of any deaths is great news for sure.

I think there is a good chance of analyst upgrades in the coming days, and possibly the share price might reflect this, but I would not be surprised to see a dip in the mean time (maybe!). Either way I'm hoping the share price will hang around till the HIF2a data which is due within 2 months - just enough time for the new ISA money, but as always with these things, and I've already had two in a row of near perfectly timed new money infusions, what are the chances this one will also hit the mark? It does seem like a realistic possibility at this point though!

Apodemus

Voyager2002 said:

Social media are saying that this morning SRNE received a US patent for a fluid delivery apparatus. The only article about this is behind a pay-wall: any idea what it is?

And the share price has pulled back somewhat: is that likely to be profit-taking after yesterday, or has something happened?

While the SRNE COVI-MSC approach (and potentially some of the other ASC treatments currently under trial) looks highly promising, I am struggling to see what is actually patentable in this, or even commercially exploitable.  Extracting ASC, multiplying them in-vitro and infusing them into a patient is all relatively straightforward and potentially achievable at the level of the local specialist hospital - that is surely one of the huge benefits of the approach?  So, once the benefits of treatment are confirmed, where does the commercial gain come in for the companies who have invested in the work?