After too many years (chuckling to myself) of watching biotech companies price movement I have learned a thing or two:
1) Don't buy an under capitalized biotech with a reasonable drug or pipeline of drugs that is expending large amounts of cash. Wait for the issuance of new shares prior to buying.
2) After the issuance there will undoubtedly be a "quiet" period (news flow) where the price will drop precipitously (not always, but usually) at which time reasonable purchases can be made.
3) Wait for the anticipated news flow that drives momentum back into the shares and sell enough shares (at a profit) to at least cover your initial cost.
It's not fool proof, but it is better than a 50/50 event.