India, Oct. 27 -- Drug development is a stepwise process, with each clinical phase answering a different question about a treatment's safety and effectiveness. In biotech investing, a "successful clinical trial" doesn't always tell the full story. Understanding how drugs progress through clinical development can help investors better assess a company's prospects, risks and upcoming catalysts. This article will help you understand why Phase 3 failures happen even after a successful Phase 2. A positive Phase 2 result can generate excitement, but Phase 3 is where a drug must prove it can meet the standards required for regulatory approval. So why does the distinction matter so much for investors?
While both Phase 2 and Phase 3 studies have pr...