The biotech company has had successful clinical trials yet is unloved by the market. Here's why investors should start a position now. Written by James Anderson Typically, early-stage biotech companies are considered to have a binary outcome. If successful with the first product that enters clinical trials the company moves on to raise more money through stock sales, enter a partnership with a large pharmaceutical company, or sell the company. In each case, investors do well. However, if the first product fails in its clinical trial, there is a good chance the company will run out of money and fail. Hence, it’s binary -- all or nothing. Stem cell therapies have been garnering significant attention as the field of regenerative medicine starts to evolve. As one would expect, there are a number of start-up biotech companies in the field.