For investors in the biopharma arena, it's absolutely critical to understand the inherent risks of certain kinds of stocks. Whether you're looking to invest in developmental-stage companies with no revenue, or targeting profitable players with significant revenue concentrations, it's important to understand the catalysts that could lead to additional volatility.

Next week, Regeneron and Sucampo Pharmaceuticals are awaiting FDA approval decisions on new indications for their flagship products: Eylea and Amitiza, respectively. Synta, on the other hand, is expected to outline plans for its phase 3 trials of Ganetespib later this year. In the following video, health care bureau chief Brenton Flynn helps to put these news items in the right perspective for investors.

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