This week's tweet of the week comes from Frank David, who points out a fact he learned in an article by Matthew Herper: Over half of companies that got a drug approved by the FDA from 1950 to 2011 did so only once.
In the following video, senior biotech specialist Brian Orelli and health-care bureau chief Max Macaluso discuss the implications. While it could mean that biotechs have trouble getting a second drug approved, it's likely that many of them got acquired before they had the chance. GlaxoSmithKline (NYSE:GSK), for instance, bought its partner Human Genome Sciences after it got its lupus drug approved. And Celgene (NASDAQ:CELG) bought Abraxis for its cancer drug Abraxane before the biotech could use its platform to get additional drugs approved.
Looking at the current crop of one-drug wonders, Medivation (NASDAQ:MDVN) is an attractive company whether it continues alone or gets acquired by its partner Astellas Pharma. Watch the following video for more of Brian's and Max's thoughts on Medivation.
Unlike biotechs, tech companies have no problem coming up with new products
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now, for just a fraction of the price of Apple stock. Click here to get the full story in this eye-opening new report.
Brian Orelli has no position in any stocks mentioned. Max Macaluso, Ph.D., owns shares of Celgene. The Motley Fool recommends Celgene. Try any of our Foolish newsletter services free for 30 days. 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.