Biotech Risks

• Most biotech companies don't make money
• A lot of day traders are trading in biotech stocks
• It can take up to 15 years and $900 million dollars to get a drug through the FDA
• 92% of all phase I drugs never make it to market
• There are open issues with patenting of human life
• Failure in one companies drug or death in a drug trial can bring the whole sector down
• Prices are very volatile and can move up or down very quickly
• Biofoods and biodrugs may not be accepted by public. Biofoods are called (frankenfoods)
• Risks to biotech industry if there is a large-scale commercial release of a genetically altered organism were to result in a catastrophic environmental damage or pollution