Investing in biopharma companies is a high-risk/high-reward approach that makes millionaires out of average investors, but it can also turn a promising investment into a truly undesirable portfolio holding. If revenue is not yet being generated from products, a company's stock price can rely heavily on positive news from treatment candidates moving through clinical trials.
NGM Biopharmaceuticals (NASDAQ: NGM) has had a few ups and downs in its clinical trials in 2021, leading to fluctuations in stock price. There was also an overall market decline in September, and it has dropped by 23% over the past three weeks, while its latest news has been positive. This could be the setup for an excellent opportunity to buy on the dip.
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Is Good News Enough for You to Buy NGM on the Dip?