One of the more exciting yet admittedly risky types of investing is buying into cheap drug developer stocks early in their company life cycle. That’s because the world of drug development and biotech research tends to rely on big market-moving moments like regulatory approvals and clinical trial results. Thus, these stocks, especially when trading at low prices, have the potential to rapidly increase in value.
In such cases, a frenzy can quickly spike the stock, leading to a relatively short-term situation with above-average returns. However, it is important to keep in mind that just as quickly as these stocks rise they can fall as a result of disappointment or regulatory failures. That said, if investors understand the medical potential of the drug developer they are investing in, the risk can be more palatable.
As such, this article will aim to look at three cheap drug developer stocks whose products could rapidly raise their value. Scynexis (SCYX) As far as cheap drug developers go, Scynexis (NASDAQ: SCYX ) didn’t always fall into that category. Rather, the company once traded over $100 and today is down 98% since its initial public offering in 2014.
There have been several reasons for this between its recalls and deal restructurings with GSK (NYSE: GSK ). Beyond this, its product pipeline tends to fly under the radar for many investors as its focus on anti-fungal treatments is often misunderstood. Yet, due to the biology of fungi, treating them is an incredibly diffic.
