Quote:
Originally posted by Steen2
I guess I am a clueless GFYer when it comes to business.
How are Biotech companies making so much money without selling any products right now? Is the government (or private groups) paying them for research?
Thx.
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Inverstors are paying for Potential. It's a gamble but it is all tied into the product field the company is doing research in.
It CAN pay off. For example: Genentech was a gamble for a long time until they came up with their anti-blood clot drug.
Same with Gilead Sciences' retroviral portfolio (VIREAD).
You just have to pick the right ones and ride out the cycles.