Some analysts feel that the biotech sector's recent tumble is evidence of the biotech bubble bursting.But they're wrong; the market is simply in a period of adjustment.
The premise behind the bubble idea is that biotech companies as a group are overvalued, that their market caps aren't supported by performance. In other words, that their perceived value is all smoke and mirrors.
The problem with that argument is, these analysts are using a mass of technical indicators to support it. Anyone who's followed start-up biotechs knows that's a fool's errand.
investing in biotech
Triple-Digit Gains… With Easy "Insurance" Against Risk
How do single-day stock gains of 40%, 50%, 75%, even a 100% or more sound? If you're anything like me they sound pretty darn great.
Those kinds of gains happen almost every day, but the mainstream financial media would much rather focus on recent stories such as: FB jumps 14% on increased mobile revenue, GOOG rockets ahead 13% on higher top line, or TSLA up 8% on higher than expected sales of the Model S.
Small-cap biotech stocks can deliver triple-digit gains – or they can crash if clinical trial results disappoint.Here's how to limit your losses...
- 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%...
Biotech Stocks to Watch in 2014: Check Out Today's Biggest Movers
That follows a 60%-plus return last year, far outpacing the 30% gain of the broader market. Some 81 biotech companies saw share prices more than double in 2013.To continue reading, please click here...
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...
Our Worry-Free Way of Investing in Biotech
If there's one sector that's primed for explosive growth right now, it's biotechnology.
Its position as a new market leader in the tech sector cannot be overstated. Clearly, investing in biotech is an idea few can afford to ignore.
Genentech, the first biotech company, was formed in 1973 and was the first to go public in 1980, which launched the biotech sector.
Though the sector is only 33 years old, humans have been using varying forms of biotech for thousands of years, before anyone was investing in anything.Read More...
The Best Biotech Stocks for 2013 Are Now Within Your Reach
Biotech stocks are soaring in 2013 as major innovations in healthcare have offered enormous breakthroughs on once-untreatable diseases and conditions.
But for years, it was tricky to invest in some of today's best biotech companies given their volatility and uncertainty in the industry. For the better part of five years, some of today's leading biotech stocks remained essentially flat.
For some time, it was best to stick to large-scale pharmaceutical companies with a strong yield and avoid mass speculation in hit-or-miss penny stocks.
Well, not any more. Shares of the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) - which tracks industry returns - are up a staggering 42% since the beginning of the year, and the health/biotech industry has the highest returns of any sector for the year.
And you haven't seen anything yet...
With one of the most exciting biotech companies now joining the NYSE and another setting its focus on an uplisting, we're seeing major changes in the biotech industry and investment. And there are companies poised to become the best biotech stocks you can find right now.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...
Meet the Biotech CEO With a $30 Billion Breakthrough
There's a deadly problem with one of the nation's major medical markets - vaccines.
The technology we use today to prevent diseases like the flu, chicken pox, and polio is hopelessly outdated.
It still relies on the delivery of a portion of the actual virus to the patient to develop immunity. Some of these agents are still grown in chicken eggs, just like they were back in the 1930s. And the vaccines themselves or their additives can still make people sick.
But what if you could develop a whole new class of vaccines that were actually safe using a synthetic DNA? Better yet, what if you could vaccinate yourself against HIV, cervical cancer, leukemia, and hepatitis?
The payoff would be tremendous... 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...
Letting Biotech Companies "Patent Nature" Could Be a Huge Boon for Investors
The U.S. Supreme Court has just agreed to hear a landmark case that could have extreme money-making ramifications for biotech companies.
Next June, the nine justices are expected to settle - once and for all - whether companies can patent human genes in the United States.
The Patent and Trademark Office has been issuing patents on DNA for nearly 30 years, according to Bloomberg Businessweek.
Roughly 4,000 of the 22,000 human genes now have some form of patent.
But the American Civil Liberties Union has challenged the practice in Association for Molecular Pathology v. Myriad Genetics. Now that case will go to the highest court in the country.
At heart, the legal question sounds simple: Does Myriad Genetics Inc. (NasdaqGS:MYGN) have the right to patent two genes that signal whether a woman is at higher risk of getting cancer of the breasts or ovaries?
Myriad of course did not invent or create the breast cancer predisposition genes, referred to as BRCA genes.
But it did create something called the BRACAnalysis test that looks for mutations on these genes. Those mutations are associated with much greater risks of breast and ovarian cancer.
Usually firms cannot get that kind of market protection for something that is clearly a product of nature. But in this case, Myriad has developed a process of extracting a gene that makes the resulting molecule novel and chemically different from DNA that naturally occurs in our bodies.
And, after all, it took Myriad 17 years and $500 million to develop the test. Without barriers to entry, other firms could simply come in, take advantage of all that costly effort and sell a knockoff for less money.
Even if that weren't illegal, it's obviously unfair.
Let's dig into the case and why it matters to you...
To continue reading, please click here...
Three Biotech Stocks to Buy Now
If you're looking to hit a home run over the next 12 months, your best bet for stocks to buy now is biotechnology companies - especially those focused on cancer research.
Here's why: biotech stocks have been in a stealth bull market in 2012.
In fact, the values of the 230 publicly-traded biotech companies tracked by the BioWorld Stock Report have jumped by an average 38% year-to-date.
The third quarter was especially hot. The Nasdaq Biotechnology Index rose 10% over that time frame and is up a healthy 37% this year.
And, nothing is hotter than companies focused on the battle against cancer.
Take Medivation Inc. (Nasdaq: MDVN), for example. This California-based biotech has jumped from $23 to $46 a share, largely on the approval of Xtandi, its novel prostate cancer drug.
Thousands of other experimental drugs are going through various stages of clinical trials, and the largest category in the pipeline is cancer drugs. With that in mind, it's safe to say that if you're looking for a stock with big upside potential, cancer-driven biotech stocks should be high on your list. Biotech Stocks: Cancer Research is Paying Off
A cancer diagnosis was once a death sentence -- especially if you were diagnosed with the disease in its late stages.
But, both government and industry have spent vast sums in the last decade researching how cancers develop and spread.
And now all that investment is starting to pay off -- recent clinical trials and treatment breakthroughs show real promise.
The newest cancer research focuses on three fronts.
To continue reading, please click here... Read More...
Five Miraculous New Brain Secrets You Need to Know About
It's the most complex organ on earth - the human brain.
And our understanding of the brain is about to reach critical mass.
Our knowledge of the human brain grows by leaps and bounds almost every week. In just the last two weeks, researchers have made several new breakthroughs crucial to learning more about diseases that can cause mental illness or kill us outright.
I predict that in the near future our knowledge of the brain will become so complete we will find cures for such deadly diseases as Alzheimer's and Parkinson's. The same holds for depression and schizophrenia.
And that's one of the key benefits of living in the Era of Radical Change. What was a deep mystery about the brain (and other areas) just a few months ago is now much better understood.
Of course, the pace of change is nothing short of amazing. Consider that as I was preparing this report on five new brain secrets, I came across two more brand-new advances in brain science. Each one holds great promise in our drive to live, longer, healthier, and smarter lives.
Take a look...
Brain Secret No. 1: SuperAgers Have the Right Kind of "Senior Moments"
For decades, researchers have studied the brains of diseased older patients to see what went "wrong." They focus on the origin of diseases, like Alzheimer's, that cause memory loss or dementia.
But a team at Northwestern University took just the opposite approach - they've been studying the brains of highly alert seniors. And the results give hope to millions of aging Baby Boomers.
Turns out there's an elite group of older folks called "SuperAgers" whose brains seem to defy the effects of aging. In fact, their brains match those of people 30 years younger.
To continue reading, please click here... Read More...