Over the last five years, biotech is up 260%, as compared to the 69% gains on the S&P 500 and the 96% gains on the NASDAQ, creating a firestorm of calls for a bubble.
But I can assure you the boom is far from over.
The press may tell you, “A wave of medical innovation has sent biotech shares rocketing 200% higher in just three years. But the party appears to be over…”
Others call the sector “substantially stretched.”
Or, as The Telegraph once noted, “[Biotech stocks] are beginning to dangerously resembled the dotcom mania of the 90s.”
But it’s just not true.
With new innovation treating unmet medical needs, 80 million retiring baby boomers, and 32 million newly insured Americans, recent pullbacks have created “buy opportunities of a lifetime” for smart investors.
Even if you’ve missed the 260% run, you’re not out of luck.
In fact, you’re just in time for the next run.
Where Reward Outweighs Risk
Biotech has been on an incredible run over the last few years -- especially those that help treat unmet medical needs.
Look at ACADIA Pharmaceuticals (ACAD), as an example.
It’s offering what could become the very first drug approved in the U.S. to treat Parkinson’s disease Psychosis (PDP) of which 40% of six million patients endure.
There’s an unmet medical need. Patients need treatment.
Without it, many of the 40% suffer grueling hallucinations and delusions. It’s a nightmare for the patients and their families.
Fortunately, many of those patients could get the care they so desperately need once the FDA grants approval…
For smart investors, the story offered the buying opportunity of a lifetime.
When we first identified the opportunity, ACAD traded at just $1.05 and $1.20 in 2010 – 80% off its highs…
As the story heated up, as the trials progressed, we watched the stock soar as high as $51.99 before pulling back to $32 for potential returns of 2,948% and 2,567%.
But PDP isn’t the only unmet medical need. In fact, there are countless stories of patients in need of urgent medical treatment.
One of those opportunities – one of the most profitable ones for smart investors – resides in the immuno-oncology headlines.
Changing How we Address Cancer
A simple malignancy with uncontrolled abnormal cells can lead to extreme discomfort, pain, and eventual death.
It’s a major health burden that hits every part of society…
More than 14 million cancer cases were diagnosed in 2012.
Another 21.7 million new cases are expected by 2030.
But immuno-oncology – which could generate $35 billion in sales and help treat up to 60% of cancers over the next 10 years – is changing that.
In fact, over the last few weeks, for the very first time, a new immuno-oncology drug was proven to extend survival for patients with advanced kidney cancer – a population with excessively limited treatment options.
Patients taking Opdivo – an immune checkpoint inhibitor that allows the immune system to attack cancer – had a median survival of 25 months.
That was 5.4 months longer than the current standard of care for those with kidney cancer.
That same drug just showed a 28% reduced risk of death in patients with advanced lung cancer.
Artificially strengthening the immune system against cancer is one of the most exciting – profitable -- breakthroughs of our time.
Treatments such as these hold immense commercial potential with an apparent ability to change cancer treatments [and survival rates], as we know it.
With the biotech sector correcting 30% in recent months, many of the hottest small development-stage biotech stocks have fallen to incredibly low prices… offering us big profit opportunities ahead of the next swing higher.
Take advantage… The opportunity will only wait so long.