Step #4: Make Your Move
It’s time to make your move. Now that you have done your research and you have a good idea of which drugs and biologic agents are likely to be approved, it’s time to start investing.
Using the information that you’ve learned, invest in the companies with coming PDUFA dates that you believe will lead to drug or biologic agent approval. Once the decision comes down the line, if you’re correct, you will likely see tremendous gains.
From there, it’s time to consider your goals with each particular investment to decide when is the best time to sell.
It’s also important to remember that PDUFA dates can always end in rejection, regardless of how much research you do. When drugs are rejected, we tend to see tremendous declines in the stocks that are centered around these applications. So, as always, make sure to invest with caution!