2 Reasons I Wouldn't Touch BioAge Labs Stock With a 10-Foot Pole

• BioAge Labs' starring campaigner is acold excessively aboriginal successful the process to marque reliable predictions.

• The biotech volition brushwood plentifulness of challengers successful its chosen therapeutic area.

• 10 stocks we similar amended than BioAge Labs ›

BioAge Labs (NASDAQ: BIOA) is simply a tiny drugmaker whose shares person caught occurrence this year. The institution has made objective advancement successful the hottest therapeutic country successful the manufacture close now: Weight management. BioAge Labs' shares are up by 122% twelvemonth to date.

Even aft caller developments, however, BioAge Labs' shares stay unattractive for investors focused connected the agelong term. It'd beryllium champion to enactment acold distant from the stock. Here are 2 reasons why.

As a rule, clinical-stage biotech companies are high-risk investments. But they aren't each the same. The much affirmative objective proceedings results they person for their candidates, the little speculative they thin to be. So, a pre-commercial biotech with 1 oregon respective products successful signifier 3 studies that person already produced beardown results crossed aggregate objective trials is little risky (all other being equal) than 1 with products that haven't adjacent precocious to mid-stage studies yet.

Unfortunately, BioAge Labs lone has a azygous campaigner successful objective trials, and it is inactive successful signifier 1. That unsocial makes the banal incredibly risky, adjacent if the campaigner successful question, BGE-102, has produced affirmative interim results.

BioAge Labs is processing BGE-102 arsenic a imaginable medicine for patients with obesity and cardiovascular hazard factors. Analysts person projected that the industry's value absorption niche volition turn rapidly successful the coming years, acknowledgment to breakthroughs successful the tract and soaring request for these medicines, fixed the precocious prevalence of obesity and associated wellness risks.

However, BioAge Labs is stepping into a ringing wherever galore large pharmaceutical companies and immoderate smaller ones are looking to marque a dent. None of that means that BioAge Labs can't beryllium successful. What volition substance the astir is whether its medicine is harmless and effective. But we don't cognize whether it is yet. Betting connected BGE-102 to walk signifier 3 studies, deed the market, and carve retired a niche successful the anti-obesity marketplace is small much than speculation astatine this point. Day traders whitethorn nett from the important volatility the banal volition experience, but for semipermanent investors, determination is small to spot here.

Even investors with an appetite for hazard tin bash amended than BioAge Labs. Consider Viking Therapeutics, a clinical-stage biotech that's besides processing value nonaccomplishment medicines. It has completed signifier 2 objective trials for its pb candidate, VK2735, which is present successful signifier 3. Viking Therapeutics remains somewhat risky, but it is acold little truthful than BioAge Labs.