Six Tips on How to Spot a Winning Biotech, From Dendreon Co-Founder Chris Henney

Investing in biotech can be scary. Only one out of 10 new drug candidates ever makes it through the gauntlet of clinical trials to become an FDA approved product, and it usually takes hundreds of millions of dollars and a decade or more of research to separate the winners from the losers.

Investors usually can’t bother asking serious questions about profit-and-loss statements, or price-to-earnings ratios, until a company is 15 years old or more. And the hype—from gene therapy, to stem cells, to you fill in the blank—can be quite distracting.

Luke Timmerman

Full Story: http://www.xconomy.com/seattle/2009/10/14/six-tips-on-how-to-spot-a-winning-biotech-from-dendreon-co-founder-chris-henney/