Biotech stocks may be one of the most speculative sectors of the market, but with aging baby boomers creating a surging demand for better care and treatment options, new innovations, and multi-billion-dollar merger and acquisition potential, the sector is not only explosive, but one of the most profitable.
In fact, for over 35 years, biotech stocks have been some of our biggest winners.
- ACADIA Pharmaceuticals (ACAD) returned 4,851% and 4,093%
- Amicus Therapeutics (FOLD) retuned 636%
- Celator Pharmaceuticals (CPXX) returned 1,635%
- CymaBay Therapeutics (CBAY) returned 862%
- Fate Therapeutics (FATE) returned 601%
- Dynavax Technologies (DVAX) returned 2,036%
Sure, the sector can be plagued by long development lead times, and there is a high risk of failure, but once you find a good stock, the rewards can be significant.
Look at Amicus Therapeutics (FOLD), for example.
FOLD is a biotechnology company that engages in the discovery, development, and commercialization of medicines for various rare and orphan diseases. The company is developing topical therapy (SD-101) for the treatment of skin blistering and lesions associated with Epidermolysis Bullosa (EB), a rare genetic disorder that affects one in 30,000 newborns.
It’s also involved with Fabry disease, a rare genetic disease a deficiency of the enzyme alpha-galactosidase A (a-Gal A) that causes a buildup of a type of fat called globotriaosylceramide (Gb3, or GL-3) in the body. The good news with this treatment is that the Canadian Drug Expert Committee recently recommended this treatment for long-term treatment of adults with confirmed diagnosis of Fabry disease and who have an amenable mutation.
Even more exciting is that the Fabry treatment is on course to achieve full-year 2018 revenue of $75 million to $85 million with 360 patients currently being treated. As a matter of fact, the Japanese Ministry of Health, Labor and Welfare just approved the treatment for Fabry disease, making it the first and only oral medicine for such an issue in the country.
When The Cheap Investor first recommended this stock in August 2013 at $2.36, the greater investment community largely ignored it. Nowadays, with exciting new developments in several areas of study, shares of Amicus Therapeutics hit a recent high of $17.40 for a potential return of 636%.
Amicus is yet another profitable investment for Cheap Investor subscribers.