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Biotech / Medical : Zonagen (zona) - good buy?

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To: khrnyc who wrote (2196)2/3/1998 9:54:00 PM
From: Dauntless  Read Replies (1) of 7041
 
Dr. Rubin,

Hi, I've enjoyed reading your posts. Another FACT or two to add to your analysis of the recent stock price is the general decline of the biotech stocks over the period of interest. If you plot the biotech index for this period, you will see that there has been an 18% - 20% decline (excluding the last day or so).

Additionally, this is not the first time Zonagen (or most development stage pharmaceutical companies) has shown this sort of volatility. I believe that Zonagen fell from around 19 to 7 or so a couple of years ago. The truth is that the potential earnings leverage from just a single successful drug for a low burn rate company like Zonagen is phenomenal. That's why they have such great swings. The final act will depend mostly on the FDA, the patent office and SGP - IMHO.
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