Insiders purchased a lot shares of biotech and small medical device companies the Second Week of May 2021 (often shortly after IPO), only to lose their shirt! If you followed the smart crowd, and invested at around the same time, you are probably sitting on severe losses. Most stocks have seen an at least 50% haircut, and that's after accounting for some of the recovery of late.

Neurospace (NPCE), Design Therapeutics (DSGN), Werewolf Therapeutics (WOLF), Reneo Pharmaceuticals (RPHM), Cyclerion Therapeutics (CYCN), and Nuvation Bio (NUVB), to name a few, have all collapsed or near-collapsed. A couple of stocks are indeed trying to recover.

Unsurprisingly, all of the above are unprofitable ventures. The lesson is clear. Best to stay away from unprofitable biotech and small medical device companies when they IPO, specially when the FED engages in tightening to fight inflation.

There may be exceptions to this rule, of course. The case of platform ventures à la Moderna (MRNA) comes to mind, but even then, it was not easy to figure pre-COVID MRNA would be the star it has become. 

Be safe and good luck to all!

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