Risk is just that, risk. Investing in opportunity is never easy but can return financial rewards. Understanding the risk is the key. Pick an investment that fits your needs. Finding that investment, and waiting to see if you are correct, is the key.
Rexahn Pharmaceuticals Inc., a clinical biopharmaceutical drug development company, works to develop drug products oriented toward a variety of conditions. The company is currently progressing through Phase IIa for an anti-depressant product.
Although the company has a variety of pharmaceutical products in development, its relationships around the world may be its largest asset. Universities to corporations have developed licensing arraignments with the company that will, in all likelihood, result in solid marketing and profitability as products become approved. These relationships may also result in opportunities as they relate to the company being purchased or leveraged by larger pharmaceutical companies. In the “big pharma” world this is a key trend as larger established companies begin to lose patent protections for many products. In a general sense, Rexahn Pharmaceuticals may offer an opportunity to “reload” larger “Pharma” companies’ product bases.
Considering the nature of the company’s product base, an investor should understand that outlays for development are frontloaded and will not generally reflect the financial condition of the company. As a product begins to move toward approval and marketing, financial conditions will improve. In a certain sense, this is even more pronounced when a clinically oriented company is being considered. However, as this type of company tends to be at the cutting edge of research and development, the returns will ultimately be quite a bit larger. One needs to consider the risks, but also the large rewards associated with those risks.
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