Biotech Stocks

biotech stocks
How much does the price of a stock normally rise once the FDA approves it to the next stage? ?

just assume that theres a cheap biotech stock (selling in the .20 to .30 cent range), and it gets approved for a stage escalation…How much could the stock possibly go up?

The question is for my brothers economic class, so alittle feedback would be great, Thank You…

and if someone could explain the process of the FDA approvals, that would be great too!

No set rule of thumb, pretty much depends on the market sales potential of the drug, 20-50% moves are not that uncommon.

here’s a link for the FDA approval process:

http://www.fda.gov/CDER/HANDBOOK/DEVELOP.HTM

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