“Alzheimer’s ‘Miracle Cure’ Discovered — Your Key to an Untapped $189 Billion Market”

By Travis Johnson, Stock Gumshoe, July 21, 2011

This is all hush-hush, you understand — I’m taking terrible risks by just writing to you today.

And my intrepid readers, members of the resistance, have also pushed the limits in sharing this news. The ad makes this very clear — it came with the subject line, “WARNING! Do Not Share, Do Not Forward”

But they did, my friends — that’s just how hard the mighty Gumshoe readers fight to make sure that profitable (maybe) information can reach our greedy little fists. One of them included this terse message:

“I have forwarded this message in defiance of instructions; please do not report me to Louis Navellier.”

Have no worries, my friends — your secret is safe with the Gumshoe.

And yes, that’s who is pitching this ad our way: Louis Navellier. He’s doing so — and, of course, using the silly language to make us feel like secret agents — in order to get new subscribers to one of his less expensive newsletters, Blue Chip Growth (“on sale” for $100/year at the moment).

But still, when you tell me you’ve got an Alzheimer’s stock that might actually produce something to help those suffering from this disease … well, that catches my attention. Not just because I’m such a well-known humanitarian, but because curing Alzheimer’s would make the dollar bill signs spin through your eyeballs so fast that you’d likely faint. This is one of the huge unmet areas of pharmaceutical demand — which is why the search for an Alzheimer’s cure always finds investors, and, of course, why so many little biotech stocks have crashed and burned in the effort to develop new compounds for this disease.

So what’s our stock?

Here’s how Louis introduces it:

“Breaking News

“Alzheimer’s ‘Miracle Cure’ Discovered

“What You Need to Know about the BIGGEST Medical Secret of our Lifetime….

“Stage Set for Massive Run-UP

“—Patented drug on verge of ‘Double Blockbuster’ status… could claim top spot in TWO of world’s fastest-growing medical markets

“—New £100,000 grant awarded to verify results.”

That’s actually almost enough to feed into the Thinkolator, right there in the headline. But then Navellier gets into the details a bit more just to give us a chance to be double-dog sure of our results:

“I’ve been telling my growth-stock readers to buy a Danish pharma superstar since June 2010…

“Even today, with its diabetes ‘miracle drug’ posting a 191% sales surge in the latest quarter alone…

“And with company officials predicting blockbuster sales of $1 billion by December…

“It’s small beans compared to what may lie just ahead for us.

“You see, while almost no one was looking, a German-born scientist discovered ‘promising indications’ that this very same diabetes drug also triggers brain cell growth and protects memory formation!

“In fact, Alzheimer’s Research U.K. is so impressed that they awarded his team a £99,221 grant to further their research.”

OK, so I could bore you with more of Louis’ blather — but, frankly, I’m likely to spit out so much of that myself that it seems unfair. So I’ll just take that abundant pile of clues, puree them nicely, pour ’em right into the Thinkolator, five minutes of processing and out the other side comes a delightful Jell-o mold of …

Novo Nordisk (NVO for the US ADR, the home trading is done in Copenhagen at NOVO, but the ADR is huge and liquid for this mega-cap company)

Yes, this is a “blue chip” company, per the focus of Navellier’s newsletter — it’s a $70 billion market cap global healthcare colossus that happens to be headquartered in Denmark.

And it’s not just that Novo Nordisk has a diabetes “Miracle Cure” (that’s arguable — there are a lot of competing products), but they are really a diabetes company, the vast majority of their sales come from various diabetes treatments and from insulin and insulin delivery systems. They do have other drugs in their pharma pipeline, including treatments for obesity and hemophilia that are fairly advanced, and several hormanal treatments (hormone replacement and growth hormontes), but most of them are either focused on diabetes or its side effects, or are diabetes drugs that they’re testing to see how they work on other diseases.

Which is the case with what Navellier is teasing here — he’s talking about their latest diabetes drug to get FDA approval (last year, I think), liraglutide — brand name Victoza.

And Victoza seems to be doing quite well — this is an injectable diabetes drug, and part of the appeal for diabetes treatments is decreasing the number of injections required. The previous standard drug, Byetta, requires two injections a day, apparently, and Victoza works with just one … and there are also competing drugs looking for approval that are oral, which is obviously more appealing if the drug works for you, or injectable less often (there’s a weekly version of Byetta called Bydureon from Eli Lilly and Amylin that is possibly going to get approved next year — they had a surprising delay from the FDA last Fall). Some of the next generation oral diabetes drugs have had troubles, too, so the competitive landscape seems to be very fluid but there seems to be quite a bit of demand for Victoza, at least so far.

And yes, it is being studied for Alzheimer’s — though to say that it’s a billion-dollar opportunity just now is probably a bit ambitious, it’s not that they’re entering phase III trials or anything — they’re just starting to study the drug for Alzheimer’s, thanks to that grant in the UK, and the general rule about Alzheimer’s drugs is that they have a very, very slow approval process. This is, after all, the brain we’re talking about, and a disease that we still don’t really understand very well.

There may be cause for optimism because it’s a drug that’s already considered pretty safe and in heavy usage, so by the time we learn anything about the impact on Alzheimer’s, if any, perhaps Victoza will have had so much use that it will be easy to add indications to the label without safety fears, I have no idea. Regardless, I wouldn’t expect Alzheimer’s news next week.

Novo Nordisk is, as I said, a big company — it takes big things to move the stock price in any abrupt fashion. The far bigger trend, I’d argue, is the continuing rapid increase in diabetes in the western world, and the likelihood that as emerging market middle classes follow our dietary path they’ll find the same fate — NVO’s core market is growing and shows no sign of stopping growth, and they’re close to being a “pure play” on diabetes … which is why they’re not cheap like many of the other big pharmaceutical companies are, they trade at a trailing PE of about 25 and a forward estimated PE of 19, with analysts expecting 15% annual growth in earnings for the next five years (how would they know? They don’t, it’s somewhere between a forecast and a guess).

The yield is also paltry compared to competitors like Pfizer (PFE), Eli Lilly (LLY) or Novartis (NVS), which have dividend yields ranging from 3-5% — but those stocks have also been flat or down somewhat over the last five years, while NVO has risen some 300%, so there’s a reason that it’s more expensive. One reason is that their strong recurring businesses in insulin and diabetes management don’t necessarily face the same kind of generic competition and “patent cliff” concerns as many blockbuster-dependent pharmas, though NVO does still have those same concerns to an (arguably) lesser degree.

So … are you ready to buy into this “double blockbuster?” Louis Navellier loves growth companies, so it’s not surprising to see him embrace a stock that is priced for growth — is it a good prescription for your portfolio? Let us know with a comment below.

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Share Your Thoughts

ShowHide Comments (38)
    1. ddugger
      Jul 21 2011, 10:46:03 am

      Cancer, diabetes, Alzheimer's, and a host of other diseases are the bread and butter of the parasitical pharmaceutical, health care and insurance industries, so don't expect any flat out cures that will compete with their gravy train of marginal symptom resolvers. In fact, can you think of any actual major cures since polio's Salk vaccine? There is no money in cures, but much more to be milked from relieving symptoms. So, I personally wouldn't put a dime in this rumored cure of Alzheimer's.

    2. Joan in Houston
      Jul 21 2011, 11:05:40 am

      Pursuant to the "Miracle Cure" advertisement, here is an idea more down-to-earth:
      I often listen to Doctor Isadore Rosenfeld (spelling?) on the Fox News Channel on Sunday mornings. He speaks in layman's language, and is often quite informative. He recently commented that a new research study had shown that folks who drank two to three cups of coffee a day reduced their risk of losing cognitive skills in old age. I therefore decided that I had better teach myself to like coffee.

    3. John
      Jul 21 2011, 12:00:46 pm

      Having used Victoza and actually read the four flyers they send with it, Victoza is not without its detriments. As Doctor Isadore Rosenfeld has said there is a little poison in every drug, Victoza can cause a bunch of bad side effects including pancreatitis, thyroid cancer, and "Constipation; decreased appetite; diarrhea; dizziness; headache; nausea; pain, swelling, or redness at the injection site; sinus inflammation; sore throat; upset stomach; vomiting."

      When I started getting pain in the vicinity of my pancreas, I dropped it like a hot potato. Sometimes the old reliable (cheaper) drugs are as good or better for the patient but not as big a revenue stream for big pharma.

    4. Pam
      Jul 21 2011, 12:19:03 pm

      Within the last few months, I saw and read several articles/interviews about new research findings that show that Alzheimer's is equivalent to "diabetes in the brain". These were not related to a drug or a company. Just medical research. So…who knows? Wouldn't it be wonderful?

    5. Advantedges
      Jul 21 2011, 01:26:26 pm

      While I am not a doctor, I just spent 8 years watching the effect of Alzheimer's on my Mother, and other patients at the rehab center and assisted living facility. I would suggest gumshoe readers get educated before commenting on the disease (and NVO)… what we do know about Alzheimer's is that it is a result of heredity, diet, lifestyle, aging and possibly environment. We all need to realize that the disease manifests itself through "plaque" on the brain. A neurologist showed me the brain scan that proved that my Mom had plaque on the brain….of course I also considered that I would have the same condition as I aged. The doctor agreed, suggesting heredity and similar lifestyle are major factors in the condition, much like the association between plaque and heart disease.
      If NVO can demonstrate that they have developed a drug to remove the plaque build up on the brain, (without significant side effects) then it is likely that the sales of such a drug would be robust — if it is approved, prescribed and authorized. Let's all hope the drug works and is approved – and patients benefit from it's use. Meanwhile, if our diet or other factors are increasing the likelihood that we will have an increase in the occurrence of Alzheimer's
      disease, then we all need to know so we can make necessary changes, (which wise people are already doing. Unfortunately, the weight gain crisis in the US suggests most people are not very wise!).

    6. Brian Cheary
      Jul 21 2011, 02:55:12 pm

      As a subscriber to Blue Chip Growth, my problem with Louis is that by the time he starts pushing a stock it is usually too expensive for the average small timer like myself. A few years ago my wife owned about 100 share of Apple at a time when their shares were around $90. Apple was having a few problems at that tome and Louis downgraded the stock to a sell. My wife still fumes to this day. We made some money at the time. A year or so after we sold the stock started climbing again and Louis got back on the band wagon and started promoting it but by that time we couldn't afford to buy back into it!

    7. Advantedges
      Jul 21 2011, 04:15:54 pm

      Louis has had a buy recommendation on Apple for a long time…..if you subscribed since the 2008-2009 correction, you are happy w/ apple as a buy/hold. Hasn’t been @90 for a while. Hope your wife is into ETF ‘s now. QQQ holds Apple. So does XLK.

    8. Harold Anderson
      Jul 21 2011, 04:45:12 pm

      Today's the last day of ICAD, the International Conference on Alzheimer's Disease, in France.

      It's my understanding that many of the promising AD therapies have had set backs. Apparently getting a drug developed to improve AD patients isn't all that easy.

      I invested in Elan Pharmaceuticals in 2001 because they'd shown that their AD drug cleared the plaque from mice brains and the mice responded by acting normally again. However, they're having a hard time getting the drug to work on humans. A big part of the presentations at ICAD related to brain inflammation, apparently a side effect of all AD treatments in the pipeline.

      Elan's drug, bapineuzumab, has led to other drug therapies such as Tysabri for MS and other disorders. Bapi now has shared ownership with Elan, JNJ, and Pfizer.

      Even with bapi, we don't expect to know if it will work for some time yet so an investment soley in the hopes of an AD cure is a long term risk.

    9. Adrienne
      Jul 21 2011, 08:45:05 pm

      There are various things that can remove plaque: multienzymes, chelation therapy for the metals in the brain, magnetic therapy, and amino acids. Everything that involves the brain, including M.S., involves deficiencies of amino acids. Doctors never talk about a.a.'s because they cannot patent them and make loads of money. Unless there are amino acids in the drug, I would not touch it. BTW, anyone who has a loved one with dementia should learn about carnosine, which are two amino acids which helps improve memory/recall. Just my 2cents worth.

    10. tomt
      Jul 22 2011, 01:09:38 am

      Thanks for your 2 cents Adrienne.
      Recently a "mailer" was pitching an extract from tobbaco plant (not nicotine) was tested and shoed a terrific response (w/amloids I think) that were fundamental in the plaque of AD. An anti inflamatory effect that would help us with many conditions. There was more to this story stock, including a lawsuit that could end it all if it went against them.
      Theey will never run out of STORY stocks. The story is real enough, where they don't go to jail for it, but.. in these cases it "pays" to make a very small bet initially, where a reversal , even a severe one won't cause you to sell. Do this enough times and your bound to get lucky , or at least have better odds than the lottery. You will still have funds to ladder into your winners on pullbacks.
      BTW, I thought "wouldn't be irony for tobacco to offer a health benefit . Not so far.

    11. Patty
      Jul 22 2011, 05:12:31 am

      Check out the medical doctor on YouTube whose husband had Alzheimer's disease. She has a bunch of short videos regarding Alzheimer's and coconut oil. After doing some research, she discovered coconut oil contains lauric acid, which is a component of mother's milk. After she started giving her husband about two tablespoons per day, he recovered some of his functioning and improved a noticeable amount. She said it didn't cure Alzheimer's, but it did stop some of the progression of Alzheimer's, and it made a difference. My mother-in-law had Alzheimer's, and I wish we had known about coconut oil back then. I figure if it's good for Alzheimer's, it ought to be good for normal brain functioning, so I eat 2 T. of organic coconut oil on crackers, sprinkled with cinnamon powder, per day. (I've read that Alzheimer's is considered to be a third form of diabetes by some, so figure if cinnamon powder helps people with insulin resistance, frankly, it can't hurt.) I doubt a pharmaceutical company would develop a drug using coconut oil since they can't patent it. Too simple, besides! This info won't help anyone seeking investing info, but it might help someone with Alzheimer's…and members of their families who care for them! Just my opinion, naturally!

    12. mickey
      Jul 22 2011, 11:11:45 am

      I have been following ACAD for the last three years, I have stock positions. They have a drug delivery system that is in the phase two and phase three trials. The drug is called primavansarin. It also is trials for glaucoma, Parkinson's, rheumatoid arthritis, and Alzheimer. The drugs have a means off offsetting side affects. There has been a lot of cash infused into this company. As a rule, I look closely at following the money.

    13. Mark
      Jul 22 2011, 01:14:08 pm

      On June 11th I lost my 92 yr old father to Alzheimers. A highly educated man whom was
      a Pharmacist early in his career & thru out his life refused to take any pharmacueticals as he
      say believed they were far more dangerous to one's health than natural herbs ,supplements & vitamins. When he first began showing sings of dementia we began a protocol shown below which halted the ALZ in it's tracks. The areas top nerologist tested him annually using the MMS evaluation . He scores remained very high until he was forced to stay at a skilled care facility where they refused his natural supplements ( another story) After two weeks he began to deteriorate by 30 he was very bad & I removed him from the facility & took him for an evalution. There was a enormous, abnormal drop in
      his scores so much so the Doctor order MRI & other tests. I took him home & restarted the protocol below at higher than normal dosages . Within 1 week he began to come around ,within thirty days he was ready for a new MMS test. His scores were nearly back to normal , a documented 70% improvement from the previous test. Unfortunately he fell & had to go to the Hospital & then skilled care for another 60 days w/ no supplements . The alzheimers came back in force and affected his ability to swallow. Modern medicine let him starve to death a all to common practice in todays hospitals.

      The protocol is : 2 to 4 tbl spoons of Virgin Coconut Oil
      32 oz of pure Apple Juice spread thru out the day
      1 250mg tab of Niacinnmide every three hours total 6 per day
      1 840 mg 3 times per day no food
      + 64 ounces of distilled water min daily
      Acetyl -l- Carnitine 1000 to 1500 mg daily
      Alpha-glycerylphosphorycholine ( Alpha-GPC) 250 mg daily
      Curcumin 1000 to 2000 mg daily
      High Quality Fish Oil (kirkland) 4grms daily
      Phosphatidylserine 100-200 mg daily
      Vinpocetine 10 to 30 mg twice per day.
      All these supplements can be found at near wholesale pricing & pharmcuetical grade
      at http://www.vitacost.com

      Patient ideally should also undergo "chelation therapy " & follow Chelation doctors dietary
      directions for persons with dementia / Alzheimers.

      As for Novo & their diabetes drug (s) I find it amazing that the world is so gullible & takes this poison. There are natural supplements that have been tested & shown to as good if not better than mainstream diabetes drugs w/o any of the deadly & additive side effects.

      Hope this post helps someone out there ….

    14. Myron Martin
      Jul 24 2011, 01:58:44 pm

      Cudos to Mark (and others) for having the courage to expose the drug industry for what it is, a parasitical industry playing on peoples fear and ignorance. DRUGS CURE NOTHING, at best they relieve symptoms temporarily, but in the process INTERFERE with normal bodily processes and in the end cause more damage than they what they alleviate.

      Every drug is a POISON to a greater or lesser extent and ALL have side effects, many that do not manifest themselves until years after their ingestion. It surprises me that the one thing that has NOT been mentioned by anybody is that it is a known fact that Alzheimers patients show a high concentration of aluminum in the brain. I would bet that if people universally gave up using aluminum cookware (unless coated so as not to come in contact with food) and stopped the use of deodorants with an aluminum base in a generation we would see a dramatic drop in cases of Alzheimers.

    15. fixer
      Jul 24 2011, 02:36:42 pm

      Mark, and others who believe big Pharma has nothing to offer. Do you know that big Pharma and their private army (FDA) is trying to do away with all supplements through back-door codex altimarious (sp). Google healthfreedomusa.org for more…

    16. Infinet
      Jul 31 2011, 01:28:34 pm

      I knew a lady who,about a year after a fall during which she knocked her head badly,ddeveloped Alzheimer.
      Her husband took her to see a top specialist in London.I had asked the husband to point out the head injury incident to the specialist.whose comment was "oh yes,a lot of
      Alzheimer patients seem to have had a head injury"….without seemingly making any possible connection,

      I see a possible connection. Head and neck injuries cause inflammation and
      muscle tension /structural distortions,whch , if unresolved,can subtly affect the blood
      supply to the brain,which would result in reduced oxygen and nutrient supply,which
      in turn can lead to degenerative changes such as are seen in Alzheimer ,or indeed
      many other dis-eases (lack of ease!)
      This vital connection between Structure and Function is still largely ignored and
      may well hold an important key.An engineer would probably understand it better
      than many doctors.

    17. K. Shonk
      Aug 1 2011, 02:45:02 am

      You can give yourself Alzheirmers very easily. All your have to do is inject your brain with nitrosamines, which is very easily done. All you have to do is eat a roasted hot dog or sausgage link ccotaining niitrates or nitrates. Roasting packaged meat products containing nitrates r nitrites is all that is needed to produce sufficient nitrosamines that ingesting them once a wekk over a 20 -40 year period to produce Alzheimer's in a large percentage of the population as the popultaton ages. This effect of nitrosamines was recently (2010) discovered by a researcher at Braown University. Don't want Alzheimer's, eliminate nitrosamines and fluoritde from your diet.

    18. K. Shonk
      Aug 15 2011, 07:07:45 pm

      The etiology of Alzheimers has recently been delineated. The disease is a consquence of brain inflamation that never shuts off. The causes are multiple and are the same as that for autism in the young, and involves continual activation of the brain's immune system cells and collateral damage to functioning brain cells. Excessive vaccinations are one very common trigger. For the details, watch the video lecture by Dr. Blaylock which can be accessed at: http://articles.mercola.com/sites/articles/archiv

    19. lacertus
      Aug 19 2011, 02:45:12 pm

      Good lord, there's more psuedoscientific crap in these comments than you could shake a stick at without developing tennis elbow!

    20. forpatients
      Oct 15 2011, 02:20:19 pm

      Prevention best for disease, but virtually all (from arthritis, autism and Crohn’s disease to fibromyalgia to heart disease to cancer and diabetes) can be mitigated/reversed by natural means. Inflammation is correlated with diseases of aging. MDs in Canada and France are PAID to keep their patients healthy. I LOVE working abroad!
      For Alzheimer’s, the drug Namenda blocks one pathway that leads to it. Lithium orotate/aspartate (NOT the lithium chloride for bipolar syndrome) blocks SIX pathways leading to Alzheimer’s disease. Price differential: about $4-5 for Namenda, per day, vs about 25 cents/day for over-the-counter lithium.
      Absolutely agree with the “practical” medicine comments. We provide patients and physicians, worldwide, with information to help prevent/reverse disease, relying on world experts as consultants. Recently: an Austrailian patient wrote in – TESTS NOW ALL CLEAR – reversed an autoimmune disorder, Sjogren’s disease. Wednesday, a feisty 90 year old from Florida with bladder cancer said she stopped bleeding a month ago, and her oncologist told her not to bother to come see him until December. Motivated women in their 80’s reversed their pancreatic cancer. A 30-something from California reversed his brain tumor. Diabetes type 2 should be reversable in a matter of weeks. Patienrs should be able to reverse cancer without surgery, chemo (chemo destroys the immune system), or radiation. Detoxify on a continual basis, get the immune system tested and corrected, get oxygenated (hospitals in Russia, Malaysia and India advertise oxygen therapies), and eat properly. One MD detoxifies his patients once/week for 20 weeks, and then monthly, for life. NOT ONE has had a heart attack in 20 years. The US cannot afford “business as usual” aka the PROFIT MOTIVE when it comes to health care. The US spends twice as much on healthcare, per person, than any other country, yet we rank #63 in health care efficiency, per the World Health Organization. The only way to change things: one signed, FAXED letter to a member of Congress = 25,000 votes. Email = only 10 votes. Congresspeople track phone calls, emails, and mail EVERY DAY. Six letters from constituents usually trumps any lobbyist. At any given time, there are five TIMES as many drug company lobbyists on Capitol Hill as there are members of Congress – SIX times as many during the “Obamacare” effort. “Overhead” in Europe = 7%, in Japan, 2%, in the USA, > 30%. In democratic Scandinavia, the ballot lists categories and subcategories of what people pay their taxes for. Voters decide to pay more, less, or about the same – education/transportation/recreation/healthcare, etc? Politicians are an afterthought. They either do what the voters tell, them, or they retire/are booted out the next election. As one Swedish voter said, “We may pay high taxes, but we know what we pay for. “

    21. SAGE
      Oct 16 2011, 07:20:56 pm

      The evidence is becoming incontrovetible that the RIGHT natural substances – the chemistry of them–supports the body’s strong energy to heal itself. The poisonous
      pharmaceuticals are (thankfully by law) required to publish the possible side effects with prescriptions and also to announce them on the TV ads. Just read those, and listen to he disclaimers with the TV ads, and you get a very rapid and shocking grasp of the danger you put yourself in by taking them!

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