A few years ago, Dendreon Corporation reported phenomenal results in a first phase genetic-based treatment for inoperable prostate cancer patients, achieving remissions in a large percentage of study subjects compared to those receiving a placebo. The first phase in this case involved a relatively small number of subjects, increasing the risk that later phased tests across larger numbers would show less optimistic results.

The drug, in a later phase of testing inoperable prostate cancer patients who also had little progress with chemotherapy, was found to prolong the study patients' lives on an average of months, not years.

Then the bottom fell out of the stock when the FDA flirted with approval for marketing as a cancer treatment drug, hedged, and then failed to approve Provenge.

These events raise some important issues regarding bio-pharma investment and the biopharm economy. There are a number of brave biopharma companies that are putting money into R&D while posting losses until and unless one of their genetic drugs or agents gets results and negotiates FDA hoops to marketability. Until such an event, sometimes these companies will suffer investors who know the wait for FDA or further phase drug results will leave their money in a fairly inert stock, and take their funds towards current movers.

It seems that such investments, while riskier, stand to support firms that very well could profit not only investors, but everyone in ways well-beyond what money can buy or sell. These are life stocks, and so long as management keeps the firm expenses rooted in R&D and reasonable compensation, there ought to be some manner of hybrid investment benefit programmed into these stocks that incentivizes investment, or, holding the stock.

Perhaps tax credits for investment firms that take reduced commissions on buying bio-pharma firm stock for clients would enhance the intangible profit of this crucial industry to all. If the bio-pharma firms or their genetic development licensors meet certain fiscal discipline standards, why not reward investment firms and investors who support them against short term appearances?