Investing in biotech companies has made a lot of people very wealthy.
And it’s easy to see why:
Over the years, shares of big names like Merck have skyrocketed from just a dollar or two to $60 or more.
And meanwhile, recent IPOs for young biotech companies like Clovis, Nektar, and Gilead have delivered returns of 100x, 200x, and 336x — that’s like turning $1,000 into anywhere from $100,000 to $336,000.
Today, we’ll explore why these market-beating returns for biotech are set to continue…
Then we’ll show you how to lock in shares in what might be 2018’s biggest biotech IPO — before it goes public.
Sunny Skies Ahead for Biotech Investors
It’s a very good time to be a biotech investor.
There are three main reasons for this:
1. Shift from Large Tech to Biotech
In 2017, big tech names like Facebook, Apple, and Alphabet were on a tear.
But now, based on just about every financial metric, they’re in “expensive” territory, and they might be running out of steam.
If you’re a growth-oriented public stock investor, where do you go instead?
As Bank of America Merrill Lynch strategist Savita Subramanian recently wrote in a note to clients, “Biotech… offers higher median expected long-term growth than all 11 sectors.”
You see, at the moment, biotech stocks trade for an average of .9x the S&P 500’s current valuation, well below the 1.3x they’ve averaged since 1986.
2. Strong Tailwinds
Furthermore, tailwinds at biotech’s back can help its strong growth continue.
- As highlighted in a recent Barron’s cover story, biotech is currently undergoing an “innovation revolution” that could lead to breakthrough after breakthrough…
- The current stance of the FDA is to be somewhat amenable and “laissez faire” — this means more drugs in the pipeline could obtain regulatory approval...
- And recent corporate tax reforms are expected to stimulate strong Mergers and Acquisitions activity.
3. The Trend Is Your Friend
And finally, momentum in this sector just keeps building.
To show you what I mean, look at this chart of the Nasdaq Biotech Index during 2017 — this trend is up and to the right.
We might be in the golden age for biotech…
And the golden age for biotech investors.
Three Ways to Profits from the Biotech Trend
Now let’s look at three ways you can profit from this trend.
1. Buy the Biotech Market — The first way to profit is to buy a biotech-focused mutual fund or ETF, or build your own portfolio of large-cap and small-cap biotech stocks.
No one’s getting rich with this approach, but at least you’ll earn the overall returns of the market.
2. Get in Early with IPOs — 44 healthcare companies went public in 2017. And performance for these companies has been very strong. For example:
Argenx SE (NASDAQ: ARGX) is up nearly 500%...
AnaptysBio (Nasdaq: ANAB) is up by more than 1,000%...
And other triple-digit winners include Urogen Pharma (NASDAQ: URGN), Akcea Therapeutics (NASDAQ: AKCA), and BeyondSpring (BYSI).
Where else (besides crypto-currencies) can you get those kinds of returns?
3. Get in Before the IPO — Or, for even bigger gains, you can invest in biotech companies when they’re still private.
You see, when you invest in a company before it goes IPO, you’re getting in on the ground floor.
In other words, you’re getting in when the company is still young, and when its shares are still very inexpensive.
Let me show you one quick example…
Here’s the chart for Horizon Pharma (NASDAQ: HZNP):
If you’d gotten in at the IPO, you’d be sitting on a profit of roughly 1,300%.
But if you’d invested in Horizon before its IPO, you’d have earned 10x as much:
You’d have made a profit of 13,352% — more than 133x your initial investment.
That’s like turning a $5,000 investment into more than $665,000.
Here’s Your Chance to Get in Early
There’s just one problem — and it’s a big one:
Getting access to hot IPOs is hard enough…
But getting access to hot Pre-IPO deals is almost impossible.
But now for some good news:
Wayne and I have identified a way for you to get guaranteed access to a Pre-IPO biotech company.
We believe this could be one of 2018’s “hottest” deals. In fact, based on our analysis, we believe profits could be 19,138% or more…
If you’re joining us tomorrow night for our Urgent Pre-IPO Briefing, you’re just a day away from hearing everything!
I’m looking forward to seeing you there.