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Editor's Note: On May 15, Bill shared a very special recommendation with us – a biotech with a possible "blockbuster" cannabis-derived drug – because he wanted everyone to see just how potentially profitable (and diverse) the legal marijuana sector can be for regular investors. He's got great news for us this morning: a bumper crop of big, fast gains. Here's Bill…
Insys Therapeutics Inc. (Nasdaq: INSY) – our "War on Pain" biotech play – has given us a profit of more than 10.7% since we recommended the stock a little less than two weeks ago.
I hope you like profits, because that's just for starters.
The U.S. Food and Drug Administration (FDA) last week approved the final "product label" for the company's new synthetic marijuana drug – which means Insys can bring this new therapy to market in August.
Investors who specialize in drug stocks are always trying to pull profits from trades based on the three-step FDA "phalanx" that up-and-coming biotechs must navigate to finally get a new drug to market.
But if you really want to cash in, commercialization is the "triggering event" that can make that happen.
And that's exactly where Insys is right now.
Let me give you a little bit of context here – before I explain exactly what's going to happen next…
These Companies Can Bring Huge Investor Profits
The drug-development process is one I know well. The decades I spent as a business journalist included long stints on the biotech beat.
And during that time, I learned – firsthand – why it can take 10 years and a billion dollars to bring a drug candidate out of the lab, take it through the FDA regulatory gauntlet, and finally end up with a drug that can generate real revenue and profits.
I've employed that expertise to a very profitable advantage for my paid-up Private Briefing subscribers.
The very first stock that I recommended on the very first day of Private Briefing's  life back in August 2011 was a development-stage drug firm called Galapagos NV (Nasdaq ADR: GLPG). From the "Buy" price of $8.60 a share, Galapagos soared to a recent peak of $94.88.
Best of all: I re-recommended it over and over on the way up, meaning thousands of subscribers had multiple chances to grab hefty slices of this 1,003% peak gain.
Back in 2012, I studied the big pharma sector – and could see that the top players were facing a "patent cliff" on their blockbuster drugs. But I also saw that those firms were stuffed with cash from those big-profit drugs – and predicted those firms would embark on shopping sprees to replace those going-off-patent drugs.
I predicted a "Biotech Buyout Boom" – and identified three stocks that could be takeover targets. All three stocks I recommended zoomed, and one – a cancer pioneer – brought my readers an 818% profit.
So I understand the biotech sector, I understand the "right" stocks to pick, and I understand how big new trends can trigger some of the heftiest windfalls you see.
And two of the biggest new trends offer us some of the biggest potential gains with Insys. Those trends…
- The "War on Pain" – where doctors, currently on the front lines of the so-called "Opioid Crisis" of overdose deaths, are trying to find non-opioid drugs that can solve chronic pain.
- The "Legalization of Medical Marijuana," where doctors, researchers, and our elected leaders, recognizing the broad treatment potential of cannabinoid-based therapies – are ramping up research even as they drop legal barriers for marijuana-based drugs.
Here's what I mean…
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.
Sounds like a license to steal. I love it I want alot of it
but will this really be that big with all the new outlets for the real thing ?
Naturally Splendid Enterprises, B.C. Canada
Hey, Mr. Patalon,
Am wondering if you have heard about these folks in Canada signing
an agreement to sell their tablets of hemp oil in Japan? Sounds like a sleeper, or maybe not; but they are looking at Korea also. I do not understand the value of these products, as the Japanese are very astute buyers on quality, healthful benefits. Would like to know your thoughts!
I was reading the article about the doctors who were just convicted of running a "pill mill" and were given kickbacks by Insys. Still a good company to be involved in??
I guess everything else goes out the window when it comes to making money. Let us travel back in time for a moment and really take in the hypocrisy of this large pharmaceutical company (which also manufactures the deadly painkiller Subsys fentanyl) which has dramatically increased opioid addiction and overdoses in the U.S. In September, the anti-legalization initiative, Arizonans for Responsible Drug Policy, received a donation of $500,000 from Insys and was one of the largest single contributions to any anti-legalization campaign. In February 2016, a former sales rep for Insys pleaded guilty to fraud charges due to a kickback scheme involving Subsys fentanyl sales. Then, on August 2016, two former employees pleaded not guilty after they were arrested due to accusations for partaking in a similar kickback scheme for the drug. If you’re unaware, a kickback scheme is a form of negotiated bribery where commission is paid to the bribe-taker in exchange for services, and in this instance, highly addictive opioid sales. The motivations of the DEA are thrown into question when they back a drug manufactured by a morally controversial pharmaceutical company. When marijuana is grown in its natural plant form, it is an illegal and “highly addictive” drug with no accepted medical value. But when a pharmaceutical company develops a synthetic version that would likely cost patients more, the DEA is much more open minded.
Touché !!!!!!!!
on time news good all ther time thank you money morning.
It's a good new for old man like me.I often finding the better one .Thanh