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Back in August 2011, for the very first edition of Private Briefing, I recommended a Belgian biotech firm that I said was "like buying an independent drug development lab" for less than nine bucks a share – $8.60, in fact.
I zeroed in on the company's collaborative partnerships on a whole slew of drug development programs.
Now, I love to see this in a biotech stock, because it means that some of the usual risks of owning a small, clinical-stage company – running out of money, or the risk of one trial failure wiping out the firm – were minimized.
That arrangement was critical in the massive, almost tenfold gains that followed. (And, as you'll see, it's going to be just as important in the bigger gains I see down the road for the folks who bought this company.)
I've recommended these shares for my subscribers more than a dozen times since, each time before a fresh bumper crop of profits. This company has given more than 931% in peak gains for Private Briefing subscribers, and a market-crushing 26% since I first shared it with Money Morning Members in September 2016.
There's a very specific reason I see these gains getting even bigger for everyone in the future…
Galapagos Has Incredible Potential Ahead
Galapagos was trading at right around $71 a share when I first took this stock "big" in Money Morning. This week, on Tuesday, it hit a new high at $88.50.
One of the big reasons for this action: Galapagos' flagship drug, filgotinib, which the company is developing to fight both rheumatoid arthritis (RA) and Crohn's disease (CD).
CD was named after Dr. Burrill B. Crohn, who first described the disease in 1932. Crohn's disease – a chronic inflammatory condition of the gastrointestinal tract – belongs to a group of conditions known as inflammatory bowel diseases (IBD).
As many as 780,000 Americans are afflicted by CD. Although men and women are equally likely to be affected, Crohn's is more prevalent among adolescents and young adults aged 15 to 35.
The market for Crohn's drugs is expected to reach $4.2 billion by 2022, according to a report from research and consulting firm GlobalData. And that means the dominant drug will qualify as a "blockbuster" – the Holy Grail for biotechs.
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. 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.