What is Biotechnology Biotechnology is a broad term that applies to all practical uses of living organisms -- anything from microorganisms used in the fermentation of beer to the most sophisticated application of gene therapy.

BACKGROUND & OVERVIEW Risky Market Uncertainty Switch from Biotech to Pharma. Affect of Economic Fluctuations

BACKGROUND & OVERVIEW The Mapping of Human Genome Fast Drug Approval Convergence of Nanotechnology with Biotechnology Advanced Computer Technology Databases Partnerships and Collaborations New financing in Biotechnology Increase in Biotech IPOs

CLINICAL TRIALS & FDA What is FDA (Food and Drug Administration)

Pre-Clinical Trials Studies in cell cultures and animals 1 in 1000 make it to human testing Patents last 20 years from this point Last average about 5 years

Phase 1 First use of drug in humans Test for safety and side effect Limited number of patients Ranges from 1 to 3 years Chances just under 30%

Phase 2 Test for ideal dosing range of the drug Larger number of patients Last average of 2 years 60% of chance to be approved

Phase 3 Treatments compared to common or standard therapies Random choosing Goal ; experimental therapy more beneficial than standard therapy Double blind therapies At least 1000 patients Averages between 3 and 4 years 70% chance of being approved at this point

Phase 4 To continue evaluation of the drugs safety This stage starts after the drug is on the market

For the investor Costs and time consuming Ranges between $350 million and $500 million Companies with many product on the market Large pipeline Cash for funding new drugs

INVESTING IN BIOTECH STOCKS (DOS ) A Small Part of a Well-Diversified Portfolio Products That are in Late Stage Clinical Trials Significant Partnership Arrangements Stocks with Broad Pipelines Avoid Stocks That are Hyped in the Press

CLPA (Nasdaq) dropped 69% in one day

INVESTING IN BIOTECH STOCKS (DOS Continued) Be Passionate Learn All About Your Company's Biotechnology Know Your Risk Tolerance Invest Money That You Dont Need

INVESTING IN BIOTECH STOCKS (DONTS) Dont Forget About the Business Dont Buy a One-Hit Wonder Dont Buy on Margin

HOW TO EDUCATE YOURSELF Ernst and Youngs Biotech 99 Report Access Excellence by National Health Museum Tutorials at Street.com Scientific American Articles BioMedNet.coms Daily Newsletter

HOW TO FIND NEXT HOT BIOTECH STOCK Red Herring Magazine FDA Approval Process Center Watch web page (tracks clinical trials) BioSpace.com FDA Web Site (upcoming meetings) Pay Attention to Alliances Want Free Trading Advice