The Best Kind of Biotech Dilution

The "d' word -- dilution -- gives biotech investors cold sweats at night. It can strike with little warning, leaving investors with devalued shares.

Dilution is always better if avoided entirely, but it is a key source of funding for development-stage drug companies. For biotechs planning secondary offerings to raise capital, a good role model would be Clovis Oncology. Shares were down about 2% today, but investors at the beginning of the year are still enjoying a healthy four-bagger.

In this video, health-care analyst David Williamson discusses the offering in further detail and why the market made Clovis one of 2013's top performers.

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Follow David on Twitter @MotleyDavid.



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