RE:Should You Sell Biotech Stocks If There's a Recession?Thanks for sharing Davgro.
Risk tolerance is the key here - it certainly won't be for everyone ... but ... there are a few really good points to consider.
For risk-tolerant investors, recessions are actually a great time to load up on shares of attractive biotechs when they're cheaper than normal.
I am of the opinion that our Phase 2A/B data is perfectly suited for Acute Pain - but - we are in the dog house re. chronic and the market condition is only adding to the stress. That's a perfect storm if you're accumulating and we actually prove to be sitting pretty on the acute side. Time will tell.
The trick is to understand which companies have declining share prices because of events beyond their control and which are likely to struggle in a recessionary environment.
If we are well suited for Acute - then this market environment won't matter. The cash in the bank will sustain us through a maket downturn and through Phase 2 easily - to get it done and to get us back into negotiations with Big Pharma !
A serious downturn just might show we offloaded CITA before the storm - the right move to drop that security blanket and to put us on a US Exchange runway. Going to a US exchange is likely a late 2023 or early 2024 thing ... but ... none-the-less ... we weren't going while still holding on to that security blanket - NOR - while the market is in downturn. We've got time !
There is no point going until good news is plentiful and sustainable. I stick by that comment. You simply don't rush this.
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Finally, I am looking forward to learning more about any of the following as they can be helpful, even in a downturn:
1. Where 352 stands and how we will proceed.
2. What peak sales are expected for acute considering we're planning on solving a 50 year old problem and we're looking to be the drug-of-choice after the operation.
3. Getting some more details on ATB-344 on the anti-viral side - longshot on an update - but we're trying to push for information here.
4. What about fast-track or Breakthrough Therapy for Acute - do we have enough data now to apply for one or both ? Still might be waiting on trials in July/Aug ... but ... give us an idea of what the plan looks like.
Our new Chairman is very aware of Fast-track and Breakthrough Therapy as his team has been through this before at Heron (for acute pain). They achieved both. It's our turn now : )
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Enough water in the pool to make a splash - should they choose to take the plunge.
Time to finish that beer - expose the belly - and jump. Hahaha!
IMO