Editor's Note: Normally this intelligence would go to paid-up members of Bill's Private Briefing, but this debut is going to be so big, and the medicine so important, that he wanted to give everyone a chance to tap this $21 billion market. The shares start trading on Thursday, Aug. 6, so there's some time to get in position. Here's Bill...
This soon-to-debut company is a biotech that's doing late-stage research in an area we've been following closely over the past few weeks.
The company is developing an oral immunotherapy that's designed to lessen the effects of peanut allergies, a malady we told you about in a report on a stock that's soared nearly 40% since Radical Technology Profits Editor Michael Robinson told us about the company back in April 2014.
So let's take a look at the allergen issue and then "drill down" on this tremendous opportunity...
A Bad Problem Getting Worse
The company is Aimmune Therapeutics Inc., a Brisbane, Calif.-based company that will trade on the Nasdaq with the ticker AIMT once it goes public on Aug. 6.
We have a special vantage point on this peanut-allergy issue because of that earlier recommendation from 2014.
Shares of that Lansing, Mich.-based company - whose products include kits designed to test for the presence of peanuts in food - rocketed 21% in a single day's trading back on July 21 after the company delivered better than expected results.
That company's financial results, and stock-price gains, underscore the very real significance of the peanut-allergy problem - and the financial opportunity it represents for companies with treatments or related solutions.
As I said in that earlier report, parents who have children with peanut allergies are very focused on this malady.
My wife, Robin, and I have an eight-year-old son, Joey, and we've been lucky: So far, he's displayed no major food allergies.
But I grew up with a cousin who had a serious dairy allergy, and Joey right now has a friend and classmate who suffers from peanut allergies. So I've seen - firsthand - how scary these allergies can be.
And it's not just kids who suffer from this.
According to Food Allergy Research & Education Inc. (FARE) - a nonprofit organization that focuses on this issue - about 15 million Americans have food allergies, including all those at risk for life-threatening anaphylaxis.
Anaphylaxis is a rapidly progressing, life-threatening allergic reaction that can result in airway constriction, heart rhythm irregularities, and even intestinal attacks. The most severe cases can put a person into shock - or even kill them.
And it's not just a U.S. problem.
More than 17 million Europeans have a food allergy, FARE says. And hospital admissions for children experiencing several allergic reactions have surged sevenfold over the past 10 years, according to the European Academy of Allergy and Clinical Immunology (EAACI).
If you're talking about children under 18, this very serious malady affects one in every 13 kids - about two in any classroom you walk into.
And the problem has soared in recent years.
According to a 2013 study by the Centers for Disease Control and Prevention (CDC), food allergies among children zoomed about 50% between 1997 and 2011. The economic cost of this is nearly $25 billion. But if you're a parent of one of these kids, that "cost" runs a distant second to the worry you feel every time your son or daughter buys a school lunch, goes to a friend's birthday party, goes out to eat with others, or snags a snack while at a friend's house.
Every three minutes, a food-allergy reaction triggers a visit to a hospital emergency room - to the tune of 200,000 visits a year. And the CDC says food allergies are responsible for 300,000 doctor visits by kids under 18.
A Very Compelling IPO
About the Author
Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning at Money Map Press. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish... and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.