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These 3 Biotechs Have Automatic Demand

It takes real skill to market a drug or medical device properly, and sales can greatly suffer if a company doesn't do it right. A marketing miscue can turn even the best drug or medical device into a flop.

In this clip from The Motley Fool's Industry Focus: Healthcare, analyst Kristine Harjes is joined by healthcare contributor Brian Feroldi to discuss why they think that Acadia Pharmaceuticals (NASDAQ:ACAD), Portola Pharmaceuticals (NASDAQ:PTLA), and Ophthotech(NASDAQ:OPHT) should see huge demand for their products right our of the gate. Plus, the team offers three questions that all investors should ask that can clue them in to a company's chance at market success.

A transcript follows the video.

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Kristine Harjes: Pivoting the conversation a little bit to how investors can use this information, what does this all mean to an investor looking at a company and trying to decide whether or not they have a solid marketing effort and team?

Brian Feroldi: Right. I learned firsthand that just because you launch a drug or a medical device -- it could be great, it could be wonderful, but that doesn't mean it's going to sell well. There's truly a skill to marketing a device. It's something that's not always something that a company can get correct. I have three guide points that I look at when I'm investing to try to figure out ahead of time: OK, if this gets approved, what kind of chances does it have of seeing market success?

First question I ask is: Does the company that's launching the product have presence in the disease state already? Or, a partner that is in the disease state? For example, if Novo Nordisk, who is kind of the big dog in diabetes, if they launched a new diabetes drug, they would have, in my mind, no problem getting the word out and getting to doctors because they already have those relationships in place. But if you have a new...


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