With just six months left on my 2014 bioscience "profit calendar," things are really starting to look promising for the second half of 2014. There are huge opportunities in several subsectors of the bioscience market in particular.
That said, some bioscience analysts are saying there's a bubble. And it's scaring a lot of bioscience investors out of great positions in the market.
That's why last week I shared my complete bioscience market outlook for the rest of 2014 with my paid members - to help them see the real market story.
Today I want to share with you some of my thinking, expectations, and predictions, as well as my strategy to get us tapped in to a segment of the bioscience market we haven't even touched yet.
This segment has been tremendously profitable for some of the world's biggest drug companies, and I think there are going to be some killer profits for us there, too... Full Story
How to Tap Big Profits in That "Other" Bioscience Niche
At first glance, it may seem like bioscience investing is so complicated and risky that it's hardly worth your time and money to invest, at least if you don't have someone knowledgeable to guide you.
And it's true. Putting your money behind new, experimental drugs, without some guidance, is a crapshoot.
But there's an approach to making profits from this sector that doesn't rely on breakthrough discoveries, expensive drug trials, or constant cash infusions through dilutive public offerings to fuel its engine.
That's what makes the company we'll look at today such an attractive investment.
Welcome to the lucrative world of generics... Full Story
Best Stocks to Buy: Cash In on a New $35 Billion Biotech Market
Each week our Money Morning experts dish out the latest profit plays - and asset-protection moves - for our Money Morning Members - all for free.
Last week, Money Morning's best stocks to buy included five biotech picks. Four of them are blazing trails in immuno-oncology. Our fifth biotech pick has already tripled in value in the last six months, and it's not done yet.
Aside from these biotech winners, we covered an ETF play on the European Central Bank's recent policy changes, the best stock in "unified computing," and a smart gold buy at a discount.Get these plus more of our latest, best stocks to buy.
The Four Telltale Signs of a Bioscience "Blockbuster" in the Making
The FDA's Expedited Programs help get promising new therapies for seriously ill patients approved as soon as possible.
But they also create an unintended side effect that's a huge advantage for investors: They point exactly to the biggest money-making opportunities in the bioscience industry.
They're like big, green, neon signs that say, "This is an important drug with incredible profit potential."
And this is how you find them... Full StoryRead More...
Stocks to Buy: This Botox Competitor Is Heading Toward Huge Profits
When Valeant Pharmaceuticals International Inc. (NYSE: VRX) and activist investor Bill Ackman made an unsolicited $46 billion bid to purchase Botox maker Allergan Inc. (NYSE: AGN) last week, investors got a glimpse of just how big the Botox market is globally.
And that had us pointing to our "Stocks to Buy" list...Money Morning's Defense & Tech Specialist Michael A. Robinson has been recommending a biotech stock that develops similar specialty products for dermatological applications. And it could see huge gains soon...
These Long-Term Profit Machines Just Went On Sale
Market volatility has suddenly created some great opportunities, including those in the biotech sector.
Supporting the inevitable ascent of the industry is the release of a steady stream of compounds that have helped them rack up billions in new revenue.Grab these long-term profit machines at a discount now.
- The One Thing You Must Know to Hit It Big with a Biotech Stock When 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...