Want Clinical Trial Success? Look Here

Avoid drugs like XOMA's gevokizumab and look at antivirals and antibiotics like Gilead Sciences' Sovaldi.

Mar 24, 2014 at 6:30PM

Companies can run into a variety of issues that trip up drugs that look good in early trials but fail later trials. From placebo effect, to small clinical trials, to uncontrolled trials, it can be hard for investors to gauge future successes on early clinical trials.

XOMA (NASDAQ:XOMA), for instance, ran into trouble testing its drug candidate, gevokizumab, when patients with erosive osteoarthritis of the hand improved despite getting placebo. XOMA couldn't prove that gevokizumab worked when the comparator also improved.

In the video below, Fool contributor Brian Orelli and Motley Fool Health-Care Bureau Chief Max Macaluso discuss classes of drugs that don't run into those issues, mainly antiviral drugs and antibiotics. In general, those drugs tend to translate well from early to late clinical trials because the drugs attack viral or bacterial proteins that have less variability than humans.

As Brian and Max discuss, the exception to that rule are different genotypes of a virus. Gilead Sciences' (NASDAQ:GILD) Sovaldi, for instance, is able to cure some hepatitis C genotypes on its own, but requires help from other drugs for other genotypes. Fortunately, there's a simple diagnostic to determine the genotype of the virus, making it easy for Gilead to show efficacy.

Looking for growth stocks?
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Brian Orelli has no position in any stocks mentioned. Max Macaluso, Ph.D. owns shares of Gilead Sciences. The Motley Fool recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information