Your comment about 'technologies in the pipeline' sums up the quandry with biotechs. As you have stated the leadtimes until the business model starts to produce revenue is very long. So in a way investment in this sector is more about strategy than stock selection. (Assuming we do not find ourselves in a mindless bio bull run ala 2000.) All biotechs because of these long leadtimes are open to substantial dilution on their way to commercialisation, this point must be realised if you are considering investment. The trick is to pick a handful of stocks on strategy not product and take it from there. You would look at how far there are along in bringing product to market and any defense in place once there to protect revenue streams. (Patents) Then and only then would you pay attention to potential market size.
For this reason have 3 in mind , SRX, MBP and CIR. (Do your DD, has to be exhaustive) As a roughy I have EIF BUT not yet as this stock is currently undergoing mass dilution re above. The reason I'm keen is in comparison their leadtimes are much shorter than normal being concerned with delivery of existing drugs as opposed to developing new product.
This system will not see you buy a stock for 2c and 10 years latter see it at $10.00 or more probably zero but should allow you to buy at a reasonable price before major insto involvement.
