Why investing in biotech companies?
Biotech stocks are one of the riskiest investments. These companies do not produce nor sell anything, in fact they burn cash at a shocking rate. Standard fundamental analysis does not work in this environment.
But as you surely know, high risk brings high rewards. If new drugs are elevated to the next development phase or even approved, stock prices often times rise sharply.
To identify potential winners or stocks that are trading at a discount, extensive research is required. The huge amount of time it takes to get behind this industry is the number one reason why many investors either shy away or make bad investments. With this app you can save many hours or even days of research and stay ahead of the market.
How does the Biotech Scale work?
The problem with biotech companies is that you can’t use standard fundamental analysis. There is no or only limited cash coming in. Therefore, an alternative method is required: portfolio or pipeline analysis.
A biotech company has a patented research portfolio called the pipeline. The pipeline contains the intellectual property which has to mature in 3 steps to finally reach market approval. The closer to approval, the higher the financial evaluation.
The Biotech Scale is a unique tool which allows you to quickly perform portfolio analysis. You can set weights to each of the Phases 1 to 3 and already approved drugs. The weights are then multiplied with the number of patented drugs available in each step. The sum of these weighted drugs is than calculated as the total portfolio score. And the final result is shown on a scatterplot (score vs. market capitalization). With this method you can systematically compare peer biotech companies.
How does the Biotech Scale help me to invest successfully?
Well, there are several ways in how you can make good use of the app. No matter if you are following a trend or picking discounted stocks, you can easily identify targets for both strategies.
You can use the app to get a list of indication peers e.g. 50 oncology companies.
You can use it to filter for companies with drugs in a specific phase or even marketed ones.
You can use it to see which companies have a discounted pipeline compared to their peers.
This sort of information would require extensive research to obtain, here it is a matter of minutes.
Note that this app is NOT providing any trading advice or stock picks. It is a unique database app providing quantitative research.
What are the benefits of the Biotech Scale?
Professional research: The data is gathered, filtered and classified by trained professionals (biologists, biostatisticians, programmers).
Time saving: It just takes a few minutes to identify attractive companies suitable for your investment strategy.
Unique features: The Biotech Scale is a unique tool on the internet, nowhere else can you get access to such a powerful database.
Clear data visualizations: Input features and charts are intuitive and easy to use.
Interactivity: You can adjust the scale in accordance with your investment strategy and pipeline preferences.
User Manual: The Biotech Scale comes with a detailed user manual.
Who is the target audience?
To get the most out of the biotech scale you should already be active on the stock markets. Biotech stocks are an advanced tool, hence trading knowledge is required. You should implement proper money management first to get the most out of this app.
The Biotech Scale is based on quantitative pipeline analysis therefore you should be interested in a quantitative approach towards investments.
Can I get my money back if I do not like it?
This offer comes with a 60 days full money back guarantee.
Is my payment secure and which payment types are available?
Payment security, including cards, is an increasingly important topic in today´s online world. We take this issue very seriously. Therefore we partnered with Clickbank which offers encrypted billing and payment processing. You have the option to pay with PayPal as well as with all standard cards.