USA: Investing in Biotechnology Companies


Investing in Biotechnology companies can be a great opportunity. Here are some considerations and rules for making a wise investment.


There are 166 biotechnology companies currently listed on the Nasdaq,  of a total of the approximately 3,000. Because of  the complexity of this type of securities, it is  essential, before investing, to understand the functioning of these companies and the process leading to the approval of a new drug and its marketing.

A  biotechnology company produces its medicines on a biological basis , using living organisms, such as bacteria or enzymes .On the contrary, pharmaceutical companies produce  their medicines with chemical-based drugs. Biotechnology has broader applications compared to traditional pharmacology and benefit from a term of 12 years for their patents compared to five years for  pharmaceutical companies.

The following charts show the price trend of the biotech companies.



The institution responsible for the approval of a new drug, is the Food and Drug Administration, FDA. The institution has 6 analysis centers in the US. The process leading to the approval of a new drug is divided into 3 phases. In short:


Tests of tolerability and toxicity on animals


It consists in testing the drug on a limited number of healthy volunteers, patients, in order to verify the safety and tolerability of the drug with the given dose.


It consists in testing the drug on a limited number of patients, from 100 to 300, suffering from the disease to be cured. In this stage, the effectiveness of the drug, the tolerability, the optimal dosage and the possible side effects are tested.


In this stage the number of patients is expanded, up to 3,000,distributed in different locations, divided by age, gender and ethnicity. Here the therapeutic effect and the risk / benefit ratio of the drug are definitely tested.


Before investing in a biotechnology company is necessary to study each case, the status of the testing of each drug and if complies with the FDA’s requirements.

Prof. Gianni Mattioli


Related Posts

Vintage Playroom Ideas Perfect for your Little Hipster

Nowadays playrooms are incredibly boring. It’s a harsh truth. It’s all a myriad of white, with white, with a few splashes of colour, with white again. We’re not saying there aren’t good designs out there, we’re just stating the fact that most of the times it gets buried deep under the beautiful madness that is design on the web. But good design, above everything else, doesn’t have to be or to feel modern, per se.  If you happen to be raising a little hipster (which is totally cool, hipsters are incredible trendsetters) or happen to be one yourself, we believe you’ll enjoy these designs as much as we do.

Inside Belmond Hotel Caruso Amalfi

Once I read that if the landscape of human emotion was to exist in a country, it would be Italy. And I honestly couldn’t agree more. I have been overlooking the breath-taking view of a magical suite, onto the unreal scenery that is the Amalfi coast. I am left speechless, and not just today. But in the ‘right here and right now’ of every time I visit the Italian coast. And get lost in admiring it in all its beauty. And felt the implacable urge share this sublimity with others. So here’s my homage and reportage for today: Inside the Belmond Hotel Caruso in Ravello.

AZIMUT BENETTI is the world’s top mega Yacht builder

For the 19th year running, Azimut|Benetti Group, led by Paolo and Giovanna Vitelli, confirms its place in the highly-reputed Global Order Book ranking as the world’s top builder of mega yachts, with 97 projects totaling 3,536 meters in length under construction, far exceeding the other players.