| In case you aren't familiar with them, here's a brief rundown of the various phases of clinical trials: - Phase 1: A small trial of healthy volunteers. The drug is studied to understand how it works in the human body.
(Cancer drugs are an exception in that they are not given to healthy volunteers because they are typically too toxic. Instead, they are given to cancer patients.) - Phase 2: A midsized trial with more patients. Safety and efficacy are analyzed.
- Phase 3: A large trial where an optimal dose is studied for safety and efficacy. The data from this trial is what is submitted to regulatory agencies for approval.
You'd be shocked by how many people are involved in the clinical trial process. Certainly, brilliant scientists create the drugs and vaccines, but it takes an army of people to develop and market a successful drug - from the doctors overseeing the trial to the phlebotomists drawing blood to the nurses examining the volunteers to the case managers keeping careful track of records to the other staff making sure patients have all of the information they need. And that's just in Phase 2. There's a lot more work that needs to be done after Phase 2 before the drug crosses the finish line and gets to market. But data from Phase 2 trials is usually the first real indication that a drug may be safe and effective. Now, not all drugs cross the finish line. Roughly half of all drugs with a successful Phase 2 trial fail in Phase 3. But Phase 2 is the first time you can realistically begin to think the company may have something worthwhile. For that reason, stocks can spike on strong Phase 2 data, especially smaller stocks. And early investors in the company will often sell some of their positions so as not to risk a failure in Phase 3. So when investing in biotech, I like to find small cap and midcap stocks with upcoming Phase 2 data that can act as a big catalyst for a price move. That gives me the best chance of getting in before a big jump in the near future. Good investing, Marc P.S. An innovative (and little-known) biotech company recently caught my eye. It's using artificial intelligence in a unique way that could revolutionize industries worth trillions of dollars... it's partnered with AI and tech powerhouse Nvidia... and it has an upcoming catalyst that could cause the stock to go NUCLEAR. I'll be sharing more details about this situation in a free live broadcast this Thursday, June 27, at 2 p.m. ET. It's 100% free to attend - go here to claim your spot at the event! | 
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