Investing wisely in the risky biotech market

Wall Street hasn't exactly been kind to biotech stocks as of late, making them a risky buy for investors. But analysts at The Motley Fool tell investors three important factors to consider when deciding whether or not a particular biotech is worth their money. First, great management of a potential drug is almost as important as making sure the drug is effective and safe. The Fool also advises paying attention to Phase II trials, or as they call it, "the Jan Brady of the drug development process," noting that companies who complete thorough Phase II testing are a better investment than those who rush through this phase. Finally, companies that can discover their own drugs rather than relying entirely on in-licensing are a better bet. The Motley Fool's tips are aimed at investors, but biotechs would be wise to listen to their advice.

- check out this article from The Motley Fool