Featured StoryWhen you're evaluating a biotech, or even a full-fledged pharmaceutical company, you'll want to look at its product pipeline, upcoming catalysts, and financial indicators.
But the most important asset it possesses, the heartbeat that drives everything else, is its intellectual property (patent) portfolio...
That's what will make it attractive for acquisition, merger, or licensing deals.
And it's what protects its products from marauding generic drug manufacturers, who will produce copycat therapies and sell them at cutthroat prices.
For a drug development company, that spells disaster. When a drug goes generic, it's not unusual for the original brand manufacturer's market share to drop more than 40%...
Bypass These Pitfalls to (Major) Profits in Bioscience
Anyone who's very familiar with the bioscience/pharmaceutical sector will tell you investing in experimental drugs can be an object lesson in volatility.
As the drugs progress toward FDA approval or denial, the stock prices of the companies backing them can be in for the same volatile ride.
A stock's surge or decline is often premised on general assumptions about the likelihood of FDA approval.
But within specific bioscience sectors, that likelihood varies... widely.
That's why I wanted to navigate through some types of drugs that generate a lot of enthusiasm but often crash before delivery.
That way you can avoid some of the downside risk of this often lucrative market...
Cadence Pharmaceuticals (Nasdaq: CADX) Stock Climbs 26% in Latest Biotech Deal
What a year so far for biotech stock profits...
Another consolidation in the active biotech sector came Tuesday when Cadence Pharmaceuticals Inc. (Nasdaq: CADX) agreed to be acquired by Mallinckrodt plc (NYSE: MNK) in a $1.3 billion deal. The move sent CADX up 26%.
Under terms of the deal, Dublin, Ireland-based Mallinckrodt will pay $14 in cash for each share of San Diego, Calif.-headquartered Cadence. That's a 26% premium to Monday's closing price and a 32% premium to the stock's average 30-day trading price.To continue reading, please click here...
The Best Biotech Takeover Targets for 2014
This could be the biggest year ever for investing in biotech takeover targets - all due to the patent cliff.
The "patent cliff" refers to the sharp revenue drop a pharmaceutical company faces when the patent on one of its drugs expires. At that point, other drug companies can begin replicating name-brand drugs, cutting into the billions of dollars in revenue that large-cap pharmaceutical companies are used to.To continue reading, please click here...
IPO Calendar 2014 Dominated by Biotech
IPO Calendar 2014: This year is forecast to be a record year for initial public offerings (IPOs).
Over the January to March period, some 250 to 300 new issues will launch, according to professional services firm EY - a number not seen since the start of the 2008 financial crisis.
And biotech companies are the hottest issues to date.
Since 2000, no two-week period saw more than six new biotech issues - until now.See which biotech IPOs could be the best investments now...
Furiex Pharmaceuticals (Nasdaq: FURX) Stock Up 130% Today on This "Blockbuster Drug" News
While gains were modest across the three major benchmarks today (Tuesday), there was nothing modest about these major gains for Furiex Pharmaceuticals (Nasdaq: FURX) stock.
Shares of Furiex more than doubled in value, surging some 150% intraday. The closed up 129.91% at $105.69. The reason: The company announced that its experimental drug eluxadoline significantly alleviated diarrhea and abdominal pain, which typically accompany irritable bowel syndrome (IBS), in two large late-stage trials.To continue reading, please click here...
Profit Alert: ArthroCare (Nasdaq: ARTC) Stock Outshines Broad Market, Climbing 8%
That's because British medical technology company Smith & Nephew PLC will buy ArthroCare in a $1.7 billion all-cash deal, a move aimed at tackling the growing sports medicine industry.To continue reading, please click here...
The New Way to Make Big Money in Biotech
Editor's Note: Today, we'd liked to welcome Ernie Tremblay to Money Morning. He's been providing his bioscience research to our premium services for over a year now and we couldn't be more thrilled with the results, including a 457% gain on one of his recommendations. So here's how Ernie does it...
Traditional pharmaceutical blockbusters like Pfizer's Lipitor treat millions of patients at relatively low cost. It's a high-volume business model that has kept the pharmaceutical industry afloat for a long, long time. But over the past decade, out of necessity, a new model has taken the industry by storm.
As big moneymakers, like Lipitor, reach the "patent cliff," their intellectual rights protection are evaporating, and generic drug makers are taking over their markets.
Big Pharma needs fresh drugs to take the place of those they're losing. But replacing these products with new ones is expensive. Most experts agree that it takes about $800M in capitalized costs to develop a single new drug. And frankly, the "easier" medical riddles, like treating high LDL cholesterol, have mostly been solved. The remaining tough ones, like cancer and Alzheimer's, will drive costs even higher.
So how do the major pharmaceutical companies meet the challenge? By letting small, smart start-up biotechs do the R&D legwork on new drugs, then either making distribution deals with them or buying the small companies out.
Here's what makes this new approach so lucrative for investors...
Amgen (Nasdaq: AMGN) Deal Shows How to Find Biotech's Best Investments
At $10.4 billion dollars, biotech giant Amgen's acquisition of Onyx is the fifth-largest biotech deal in history - and definitely won't be the last. This deal is a perfect illustration of why there’s so much money being made in biotech...
To continue reading, please click here...
Double Your Money in No Time Flat
If you're looking to double your money, the biotech sector is one of the best hunting grounds that you'll find.
So far this year, the iShares NASDAQ Biotechnology Index (NASDAQ: IBB) has jumped 28.2%, more than double the 13.59% gain in the S&P 500. That's on top of the 31% IBB gained last year.
What's more, a lot of individual biotech stocks have actually doubled, tripled or more.
In fact, this sector is so hot I think I've found my next double... Read More...
Why This Stock (and Sector) Will Trounce All Others
If you want to make big money in the market today you have to look to the biotech sector.
Of the top 25 advancing Nasdaq stocks on Monday, 12 were biotech plays and another was a small-cap health-care concern.
Their one-day gains ranged from 8% to 47%. Not bad for a day's trade.
Here's one soaring young biotech that's a perfect example of this boom... Read More...
- This Biotech Patent Leader Generates an 8.3% Dividend Yield Most biotech stocks are growth plays, so you'll almost never find one that pays anything more than a bare bones dividend. But this company has a distinct advantage that allows it to reward its shareholders - big-time. Michael Robinson explains. Read More...
- Medical Miracle: Biotech Duo Is "Printing" New Organs Thanks to a partnership between a global software firm and an early-stage biotech player, the day will soon come when anyone who needs a transplant will just "print" the needed tissue. Here's the idea... Read More...
Why the Pentagon Wants to Use This Penny Stock to Cure the Flu
Standard flu vaccine technology is hopelessly outdated. Many vaccines are still grown inside chicken eggs. There's a very real threat that a new strain of flu will hit - one for which there is no vaccine. (That's what happened with SARS.)
Small wonder DARPA - the shadowy research and development arm of the Pentagon - just jumped to fund the work of this tiny biotech firm...
The company is pioneering a ground-breaking new process that uses tobacco plants instead of eggs to produce the recombinant proteins that are the key to vaccines. This dramatically cuts the time it takes to manufacture and can be done 10 times cheaper than a conventional facility.
In other words, this penny stock firm is revolutionizing a $30 billion industry... Read More...
The Next Profit Breakthrough: Synthetic Biology
Drug, chemical, and biofuel firms are relying more than ever on artificial fragments of DNA to invent new products. It's called synthetic biology.
For example, teams all over the world are now in their labs looking to create novel biotech compounds or drugs by inserting synthetic DNA into cells, either living or artificial. They're also growing new microorganisms that yield biofuels to be used in lieu of oil.
Trouble is, the process is so complex that it can take days to synthesize these man-made genes, usually in small batches.
Not only is it time consuming, but it requires the use of costly robots and other advanced gear. Simply stated, if someone came along with a breakthrough that greatly speeded up the development of synthetic genes, it could affect several industries at once, not to mention its own value in the market.
Allow me to introduce you to Gen9 Inc. The company is blazing a trail in the development of scalable technologies for synthesizing genes.
Now, Gen9 is a small, new dynamic company. And its potential is huge.
It was formed last summer around a unique new device that greatly speeds up the process of creating synthetic DNA.
Even better, it cuts the cost of that process by leaps and bounds.
To continue reading, please click here... Read More...