Biotech stocks are loaded with high PE and the gamble of a big win.
Then there is the new phenomenon of finding new uses for already approved drugs.
With less capital requirements, they can do less testing with lower liability. Inspired by previous amazing findings from the blue pill to hair restoration, it seemed promising. But a small company hoping to find that rare accident is more of a gamble than a full FDA cycle with a known purpose.
But they are a niche for speculation having valuations swinging widely on short successes. Their almost random uptick makes them the perfect partner for a portfolio looking for short term not correlated assets in a correlated world.
