A startup Biotech company is evaluated primarily by products in the pipeline. GERN’s current well publicized trial is dealing with using stem cells to treat patients with spinal cord injuries so they can regain mobility. Don’t get me wrong, if GERN is successful with their stem cell technology it will be a game changer for the company and medicine. Keeping that in mind, one has to remember all the other products in their pipeline. By reviewing their website and reading the SEC quarterly filings one could easily determine the other products that they are working on.
Buying shares of GERN will get you exposure to all of the products in the pipeline, not just the stem cell trials. With these other items comes the benefits and costs associated with the attempt to bring each to market.
Geron product chart
On top of what is in the pipeline, one has to consider where it is in the pipeline. Development of drugs and technologies can take years to come to fruition. This article will not attempt to explain all the inner workings of the FDA and its approval process, but once again the websites and SEC filings often times give a clue as to estimated completion dates. In the cash burn section below one will see how this becomes an important piece of information when deciding when to buy or sell a stock.