YTD Performance: +325%
The biotechs keep coming! This time, it’s Pharmacyclics (NASDAQ:PCYC), a clinical-stage company focused on treatments for cancer and immune-system related diseases.
Pharmacyclics also is bleeding cash, like the other companies mentioned earlier, because it is focused on clinical trials instead of actual marketing and sales right now. But favorable outlooks for its leukemia, lymphoma and autoimmune drugs appear to be buoying the valuation of PCYC in anticipation of future sales.
The important thing to remember with all these biotechs is that they are highly speculative — and the lion’s share of gains can come quickly on one favorable FDA report. Conversely, all it takes is a bad clinical result to ruin the company, so know the risks before you dabble in biotechs.