Question.3280 - Assume there is a well-financed, one-year-old company in the biotech industry that is concentrating on developing chemical-based compounds that are aimed at developing drugs to reduce the effects or onset of Alzheimer’s Disease. What financial information (ratios or otherwise) would you think would be relevant or irrelevant from the viewpoint of possible investors in this company
Answer Below:
While xxxxxxxxxxx a xxxxxxxxxx in x biotech xxxxxxx doing x simple xxxxxxxx on xxxxx based xx earnings xxxxxxxx or xxxx other xxxxxxxxx figure xxxxx not xxxxxxx a xxxx diamond xxx need xx research xxx find xxx potential xxxxxx for xxx drug xxxxxx company xx developing xxxxxxxxx whether xxxxx are xxxxx competitive xxxxxxxx available xxx most xxxxxxxxxxx predict xxxxxxx the xxxxxxx will xxxx final xxx approval xxxx doesn xxx t xxxx we xxxx to xx a xxxxxx to xxxxxxx a xxxxxxx stock xxx one xxxxxx understand xxx area xx biotechnology xx which xxx company xx working xxx whether xxx risk xx investing xx the xxxxxxx is xxxxx the xxxxxx When xxx company xxx very xxxxxx revenue xxx its xxxxxxxx depends xx one xx two xxxxxxxxx products xx rsquo x a xxxx difficult xxxx to xxxxxxx such xxxxxxx While xxxxxxxxx any xxxxxxx it xxxxx s xxxx important xx estimate xxx earnings xxxxxxxxx Because xxx R xxx amp x phase xx quite xxxx and xxxxxx this xxxxx there xx little xxxxxxx coming xx estimating xxx prospective xxxxxxxx of x biotech xxxxxxx is xxxx tricky xx should xxxxx by xxxxxxx at xxx company xxx s xxxxxxxx in xxxx development xxx production xxx products xx the xxxxxxxx we xxxx to xxxx at xxx disease xxxx the xxxx product xxxxxxx to xxxxxx and xxx large xxxx market xx Ideally xxx should xxxxxx a xxxxxxx with xxxxxxx products xx development xxxxxxx if xxx drug xxxx not xxxx it xxxxxxx the xxxxxxxx process xxxx there xxx other xxxxxxxx to xxxxxxx the xxxxxx Because xxxx development xx an xxxxxxxxx aspect xx biotechnology xxxxxxxx should xxxxxxxxxx the xxxxxxx of xxxxxxxx of xxxxx for xxxx this xx also xx important xxxx of xxxxxxxxx in xxx biotech xxxxxxxx One xxxxxx take x look xx how xxxxx the xxxxxxx is xx FDA xxxxxxxx All xxxxxxxxx who xxxx to xxxx drugs xxx or xxxxxxx products xx the x S xxxxxxx an xxxxxxxx from xxx If x company xx relatively xxx at xxx FDA xxxxxxx we xxx expect xx to xxxx longer xxx it xx gain xxxxxxxx Solid xxxxxxxxx is xxx key xx any xxxxxxxxxx biotech xxxxxxx one xxxxxx consider xxxxx the xxxxxxx is xxxxxxx its xxxxx from xxx that xxx can xxxx under xxxxxxx assets xx the xxxxxxx sheet xxx target xxxxxxx should xxxx plenty xx cash xxxx at xxx current xxxxx working xxxxxxx ratio xxxxxx be xxxx to xxxxxxxxx whether xxx company xx cash xxxxxxxxMore Articles From Accounting
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