To hear Wall Street tell it, AbbVie Inc. (NYSE: ABBV) drove right into a ditch last month.
Here’s the thing. The company announced results of a Phase2 trial on March 22 that were disappointing but hardly fatal. The results mean AbbVie won’t seek fast-track approval for its promising antibody-drug conjugate, Rova-T, but it still expects to be able to take it to market in the near future.
Wall Street overreacted – no surprise there – and AbbVie shares lost 15% in three sessions.
Here’s the thing. Wall Street’s overreaction to AbbVie’s disappointing U.S. Food and Drug Administration trial results weren’t the only reason for its share-price plummet.
You see, though it shouldn’t be, biotech is in the dog house – and investors are primed to punish stocks in the sector for just about anything.
In fact, since hitting a three-year high in August 2015, the Nasdaq Biotech Index is off 6%. During that stretch, the S&P 500 is up nearly 35%.
Jara Herron, the owner of a salon and day spa in Tulsa, Okla., had just given birth to her seventh child about six years ago when she suddenly felt her chest getting tighter.
When she got to the hospital, Herron learned she was having a heart attack. Her organs soon began to fail, so doctors put her into a medical coma.
Because Herron was not a candidate for a heart transplant, her doctors instead turned to the world’s smallest heart pump, one that can be inserted with a noninvasive catheter. That heart pump saved Herron’s life.
And it’s done the same thing for thousands of other patients around the United States.
But that’s far from the only thing this innovative heart pump has done.
It’s also helped hand investors 569% gains.
Its maker is a cutting-edge medtech firm with deep expertise with heart patients.
Those big gains are just a start for this life sciences leader.
Immunalysis Corp., a unit of diagnostic player Alere Inc. (NYSE: ALR), said last week that its supersensitive new test for detecting the opioid painkiller fentanyl received U.S. Food and Drug Administration (FDA) clearance for use by labs, hospitals, and doctors’ offices.
The treatment that makes up 90% of the pharmaceutical market – good, old-fashioned small molecules created in the laboratory – isn’t going anywhere.
Yes, incredibly innovative treatments like T-cell therapy, microbiome therapies, and CRISPR gene editing are all having a huge impact on healthcare.
But we use small, synthetic molecules to create everything from aspirin and corticosteroids to sofosbuvir (Sovaldi) and ivacaftor (Kalydeco) – and we’ll keep doing so for a long time to come.
The small molecule technique dates back to the 1890s, but that doesn’t mean innovation cannot happen within that field. Scientists are hard at work in the labs, creating cutting-edge drugs, often tailored to treat a very specific disease or subset of patients.
Meanwhile, I’ve turned up a small British company that’s using its artificial intelligence platform to discover promising small molecule treatments faster – and cheaper – than ever before.
I call it biointelligence.
It’s a perfect illustration of the “Convergence Economy” we talk so much about here. By combining two or more fields of tech – in this case biotech and AI – it’s like a formula in which 1 + 1 = 3… and often a lot more that.
Today, we’re going to learn all about this tiny company and its brand-new biointelligence technology.
This company is privately held – so if you ask, Wall Street will say you can’t invest in it.
But I’ve a way you can.
In fact, I’ve found two ways.
Both of them will lead you to outsized returns – and hefty dividends.
At the time, it looked like Hillary Clinton would soon enter in the White House and clamp down on drug prices – and so the biopharmaceutical sector was deeply out of favor.
Turns out, however, our crazy bet paid off.
Despite his campaign rhetoric, President Donald Trump has pulled back from his own fiery rhetoric about drug-price caps.
That helped pushed biotech and drug stocks into a big uptrend.
And my paid-up members made peak gains of 116% – in just over eight months.
Today, things have changed – and investing in biopharma stocks is generally seen as a smart move. However, that means a lot of these shares have been bid up, and your best move is to buy big winners at deep discounts.
But to do that, you have to know how to find those deals.
Today I’ll show you how you can, too.
And I’ll reveal the three best Biotech Bargains out there right now
In the late 1980s, while working as a banking analyst, I actually got up-close and personal with Carl Reichardt, who was CEO of Wells Fargo & Co. (NYSE: WFC) at the time.
And something he shared with me in his spacious San Francisco office has stayed with me ever since.
I asked Reichardt if Wells Fargo’s focus on home and middle-market loans might be considered boring when other banks were chasing more exotic investments with higher yields.
He looked me straight in the eyes and said, “If plain vanilla means making a lot of money, then color me plain vanilla.”
I bring this up because I’ve spotted a dental-technology firm that investors might at first consider ho-hum – but that’s soared 80% in the past year. That’s five times the gains of the S&P 500 during the same period.
Yes, investing in a dental company may sound dull – or maybe even painful – but this is actually a profit-producing tech superstar.
It was a spring day back in 1992. My buddy Tim had clambered to the top of an under-construction townhouse – sent by his boss to start sheeting the roof trusses on the four-story structure.
Tim (a pseudonym, since this is a true story) – a fellow muscle-car nut and a guy my best friend, Harry, and I had known since high school – was working as a carpenter. Indeed, he was one of the best you’d find.
Tim’s life was about to change – forever.
Before Tim climbed up into the rafters, his boss – the site foreman – had said that all the trusses had been nailed down a day or two before. Once up on top, trying to reposition himself, my buddy temporarily straddled two of the squat lumber triangles.
Those trusses suddenly started to spread.
They weren’t nailed down.
Tim grabbed at the closest truss – but lost his handhold when it rolled under his weight.
And he fell.
What actually happened was that he plunged through the rectangular floor openings at each story – openings that would hold the staircases needed to climb from the ground-floor doorway all the way to the top.
My friend remembers getting both his arms, at chest level, onto the edge of one of those openings on the third or second floor – a move that slowed his fall and probably saved his life.
But he still slammed into the ground with a force that, even today, makes my skin crawl to think about.
And he was a denizen of an entirely new world.
A world of doctors, operations, physical therapy…
I’m sharing this story here today for a reason.
A bunch of reasons, actually.
I’m going to tell you about a biotech stock that I like a lot that focuses on the very real problem of chronic pain. It’s a company that’s looking at this malady in new ways.
But I also want to show you how to find still more stocks like this one – companies that are establishing whole new paradigms in biotechnology, life sciences and pharmaceuticals. It’s a brand-new business – one that I’m jazzed to tell you all about.
Most established cancer treatments – from chemotherapy and radiation to the 200 drugs out there — have one thing in common.
They’re all more or less “one size fits all” treatments, procedures, or regimens.
But the most exciting, promising discoveries – and biggest profits – are made on the frontier. And on the frontier of cancer research is a treatment under development that’s going to disrupt the field for the next several decades.
I’m talking about powerful “bespoke” cancer treatments for every patient, using their own bodies to boot.
Not only will this improve and save lives, but it’ll also crack open a market worth $25 billion by 2025. It really is a revolutionary development.
As we approach Christmas and the end of the year, I’m getting ready for one of my favorite nights.
You see, I love New Year’s Eve.
And not because I look forward to the lavish parties folks like to hold on that final night of the year.
In fact, I don’t party at all.
Instead, my wife and I have established a neat little ritual that lets us say adios to the outgoing year and to welcome in the new one by setting some goals for the one that’s coming in.
We dress up and go out for a late dinner – usually at one of the nice local eateries that we like and support. But before we do, the two of us always sit by the fire and have our most important “family talk” of the year.
Each year, you see, I write an “Annual Report” that details our achievements for that year. These include accomplishments at work and in the civic projects we’re involved with, great investments we’ve made, and projects we’ve completed.
As my wife and I sit by the fire, we review that “report” – and celebrate our accomplishments. And then we establish goals for the New Year – creating an “Investment Action Plan” whose success or failure we’ll review at our “chat” the following New Year’s Eve.
I’m sharing this story for a reason: My wife and I have been doing this for more than a decade now. That’s long enough to see that this “tradition” has had a positive impact on our lives.
And it points to a habit that I believe every investor should develop.
I’m talking about developing an Investment Action Plan.
Rats have long been one of humanity’s worst enemies.
Flea-invested rats were carriers of the bubonic plague that killed between 75 million and 200 million Europeans in the mid-14th century.
Today, rats still carry and spread many diseases – some fatal – including hantavirus pulmonary syndrome, murine typhus, and rat-bite fever.
But I love rats – specifically, OmniRats.
These rodents – developed by biotech researchers – contain disease-fighting antibodies that are remarkably similar to the ones found in us humans. And those researchers believe they’ll be the key to dozens of successful drugs.