BioPharmCatalyst: A Research Tool For A Volatile Sector

BioPharmCalalyst's drug and regulatory approval tracker is meant to minimize information asymmetry, the website's founder told Benzinga.

How The Platform Started 

Adam Burden, an international business graduate from the University of Sydney, told Benzinga he became interested in the stock market— specifically the biotech and pharmaceutical industries — because of volatility. 

To gain an edge on drug technology developments, Burden built a basic FDA calendar that he later morphed into BioPharmCatalyst. 

Initially, Burden’s venture was small; it took three to four years after the website initially launched for it to expand, he said. 

The website is predominantly viewed as an FDA calendar, but notable additions like the Drug Pipeline Database allow for deeper research.

How It Works 

The website is available in both "freemium" and premium versions. 

Free users have access to calendars, newsletters and basic screening tools.

The FDA calendar is limited to displaying only the first 150 catalysts in chronological order in the unpaid version of BioPharm.

Typical catalysts include trial readouts and regulatory approvals.

"The premium site looks at around two to three years [of catalysts], in addition to providing a screener which allows users to build their own personalized stock lists," Burden said. 

The screener filters roughly 2,000 drug entries from 600 companies listed on the Nasdaq and NYSE, according to market cap, drug development stage, short ratio, price, volume and medical condition.

After screening, users can view company fundamentals, news and charts via the integrated TradingView interface.

Cash Burn Monitor On The Horizon

BioPharmCatalyst plans to introduce a cash burn monitor that analyzes negative cash flow rates, Burden said. 

"Most of the companies are in development mode; I would say 90% of companies do not have a drug on the market, so they are heavily reliant on funds from investors." 

Clinical trials burn a lot of money; a cash burn monitor allows investors to gauge the probability of equity offerings.

With the right approach, biotech traders can leverage BioPharmCatalyst to capitalize on momentous events such as drug trials and regulatory approvals.

Users can sign up for a 14-day free trial of premium access. For users interested in shortened lists of basic, near-term information, the free subscription should suffice. 

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Courtesy photo.