Similar Past Products
Looking at similar past products is a great way to determine the likelihood for success of your potential investment. Look for any past attempts to penetrate the market you are researching, and see where it failed. If your investment has overcome the shortcomings that caused the prior product failure, your chances of seeing it to approval are vastly improved.
A recent example of this is with Mannkind (MNKD) whose inhaled insulin product Afrezza had already been denied by the FDA in the past. By identifying why it failed:
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In this case Mannkind performed its trial with an inhaler, even though it planned on using a next-generation delivery device for the final product.
And how it is attempting to overcome the previous obstacle:
- Mannkind is completing additional trials to confirm efficacy with the next-generation delivery device before resubmitting
You can get an idea of its potential to succeed where previous failures have occurred.
http://seekingalpha.com/article/1332411-minimizing-risk-when-investing-in-biopharmas?source=google_news
