Lexicon Pharmaceuticals, Inc. (LXRX), Pfizer Inc. (PFE), GlaxoSmithKline plc (ADR) (GSK): Why Clinical Trials Fail

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It’s also more risky.

A prime example is Aeterna Zentaris’ and Keryx Biopharmaceuticals (NASDAQ:KERX)‘ cancer drug perifosine, which went down in flames after the positive effect that looked good in a subset of patients in the phase 2 trial didn’t carry over to the larger phase 3 trial.

Avoid them?

That’s certainly one strategy. And I wouldn’t fault you for following it.

If you do choose to invest in companies with risky clinical trial situations, make sure you’re being compensated for it. There are certainly opportunities where the reward clearly outweighs the risk. Human Genome Sciences rose 6,300% from its lows when few people believed Benylsta would pass its clinical trials.

The article 3 Reasons Why Clinical Trials Fail originally appeared on Fool.com and is written by Brian Orelli.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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