What is BioPharmCatalyst.com?
BioPharmCatalyst.com is a tool for traders and investors to track various events within the biotechnology sector. In such a volatile space, it’s critical to understand each company’s drug pipeline and upcoming data releases, especially if you have a stake in them, but also if you’re looking to take a position in them in the near future.
These events have the potential to more than double your investment within a trading session if trial results are favorable, however, the opposite can also be true to the downside – your investment can be cut in half if results are unfavorable.
What Are the 6 Stages of Drug Development to Be Aware Of?
There are 6 stages of drug development as defined by BioPharmCatalyst, starting from preliminary testing all the way to FDA approval. This is not an official scale, but does cover most of the critical events within the drug application, testing, and approval process.
- Phase 1 – Testing the drug in a small number of humans to determine preliminary safety and tolerable dosage
- Phase 2 – Additional testing in a limited patient population to determine effectiveness and possible adverse effects
- Phase 3 – Final testing stage in an expanded population to determine the benefit/risk relationship for administering the drug
- New Drug Application (NDA) – Drug sponsor is required to file an application to the FDA in order to market drug in the US
- PDUFA/FDA Approval – The date the FDA makes a decision on an NDA. It either approves the drug or issues a CRL
- Complete Response Letter (CRL) – Points out specific deficiencies and actions necessary to strengthen approval potential
BioPharmCatalyst.com’s Core Feature → The FDA Calendar:
The FDA Calendar provides estimated (and sometimes exact) dates and relevant information on upcoming clinical events. This includes all of the stages listed above: Phase 1, Phase 2, Phase 3, NDA, PDUFA, CRL, Advisory Committee, etc. The BioPharmCatalyst team filters through SEC filings and press releases in order to put this list together. Overall, it allows traders to quickly research approaching catalysts and position themselves in trades based on the data provided.
To keep up with the happenings within the biotech industry, BiopharmaCatalyst also offers a couple newsletter options – one offers daily biotech updates and the other offers a weekly review & watch list – Subscribe Here.
How to Profit on Biotech Catalyst Run-Ups:
When it comes to trading stocks on a short-term basis, catalysts can be extremely important. They have the power to change sentiment, bring in volume, and present opportunities before the event itself even occurs. One of the best traders I know, Kyle Dennis, takes advantage of the volatility within the biotech sector in this exact nature. He profits on the run-ups into critical events, yet reduces his risk by never holding through them.
His first step involves finding a catalyst, so he uses BioPharmCatalyst’s database as one of his “secret weapons”. From his experience, he finds that Phase 2, Phase 3, and FDA Approvals provide the best catalysts for run-ups, especially if the indication is cancer or some unmet need. And while a high-quality catalyst can certainly have an impact on a stock’s price on its own, Kyle doesn’t stop there.
He also attempts to pair those catalysts with a bullish chart or trend, in addition to making sure company fundamentals are in line (do they have history of secondary offerings? What’s their cash position? What’s management’s track record? How are executives compensated?). If everything checks out, this research gives Kyle better confidence that there’s more upside potential than downside risk. Implementing this 3-step approach allowed him to Turn $15,000 Into Well Over $1,000,000.
Conclusion – BioPharmCatalyst.com is a Valuable Tool For Biotech Traders and Investors:
Without a doubt, understanding what catalysts are approaching in specific biotech stocks and the impact they can have on the value of a security in a matter of just one (or a few) trading sessions is of extreme importance. This type of volatility can’t be found in most other sectors. And while that volatility can open up your portfolio to additional risk, the profit-potential is extraordinary if approached correctly. Kyle Dennis’ BioTech Breakouts Strategy is clear-cut evidence of that.
Although the platform doesn’t cover every single biotech stock out there (many large-cap and OTC stocks aren’t covered), BioPharmCatalyst is still a valuable tool for traders and investors. Best of all, it’s free. There are more comprehensive platforms available out there, like FDATracker.com for example, but these programs require a monthly subscription. Overall, the suite of tools BioPharmCatalyst provides for researching biotech companies, including the FDA Calendar, IPO Calendar, Drug Pipeline Database, and more, makes for one of the best biotech portals out there for the cost ($0).
The Biotech Sector is Exciting. The Biotech Sector is Volatile. Perform Your Due Diligence & Research at BioPharmCatalyst.com.
Written by Matt Thomas (@MattThomasEST)