As recently shown, investing in Allakos (NASDAQ:ALLK) proves the inherent danger within the biopharmaceutical sector. After reaching a 52-week high of more than $157, ALLK stock plunged late in December and now sits just above $8 per share.
Biopharma companies often live and die by the initial success of a single compound. Once a compound receives the Food and Drug Administration (FDA) go-ahead, the sky is often the limit. An early drug’s success drives a strong revenue stream, setting up future successes.
But what happens when things go wrong? Allakos recently gave us some insight into what that looks like.
The post Allakos Is a Cautionary Tale of Biopharmaceutical Investing appeared first on InvestorPlace.