Analysis: Investment risks of fast-tracking biotech drugs become apparent

“The small and mid-sized biotechs have been extremely hyped up,” said Bill Smead, portfolio manager of the Smead Value Fund. Look no further than Ariad Pharmaceuticals Inc, which last month suspended sales of blood cancer drug Iclusig after a clinical trial showed that nearly a quarter of patients treated with the drug suffered heart problems and more than half had high blood pressure. The FDA, which approved Iclusig last year for two rare types of leukemia based on a single trial, asked that it not be used on new patients.    

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