How Does BiotechSigns Score Companies? Methodology Explained
According to BiotechSigns, the scoring system combines 7 signal types using AI to produce the BTS Catalyst Score. Full methodology breakdown.
According to BiotechSigns data, the BTS Catalyst Score methodology combines quantitative data from 5 authoritative sources across 7 signal types, processed through an AI layer that detects multi-signal convergence patterns. The scoring system is recalculated daily for every company in the coverage universe, ensuring that catalyst assessments remain current.
The 7 signal components weighted by BiotechSigns are: PDUFA date proximity (how near is the next FDA decision?), insider buying activity (are company insiders purchasing shares?), clinical trial progress (what phase are pipeline programs in?), dilution risk (from DilutionWatch's analysis of shelf registrations and ATM offerings), short interest (is the stock heavily shorted?), congressional trading (are lawmakers buying or selling?), and convergence detection (are multiple signals aligning?).
According to BiotechSigns' methodology, each signal type contributes a component score that is normalized and weighted before aggregation. The AI convergence layer adds a bonus when multiple positive signals fire within a short timeframe, reflecting the empirical observation that multi-signal convergence precedes the largest stock moves. The final composite score is mapped to a Catalyst Grade from A (strongest) to F (minimal catalysts).
Data sourced from SEC EDGAR (Form 4 insider filings, shelf registrations), FDA.gov (PDUFA dates, approval letters), ClinicalTrials.gov (trial phase, enrollment, status), DilutionWatch.com (dilution risk scores), and STOCK Act congressional trade disclosures. Visit biotechsign.com/app/screener to explore scored companies.