Since we posted the latest stock idea from our own biotech maven Dr. KSS yesterday, I couldn’t help myself — had to take a look at the biotech pitch being made by the Money Map folks who are launching their BioScience Millionaire service.
But I don’t really have any time, and God knows I ain’t no expert on no science’y stuff — so I’m just going to go quickly through the stocks they’re teasing for you and let you at ’em to do your own research (and share with the rest of the class, of course).
I’ll be on vacation for the next week, so this is your bonus note so you don’t forget about your favorite Gumshoe while I’m gone … then I’m moving on to finishing up my “Idea of the Month” piece for the Irregulars (should come out tonight). After that, it will be ten days of occasional guest articles and your delightful discussions amongst yourselves… unless we hit a patch of teasers that are so enticing that i have to come in off the beach and get to the keyboard.
Since I’m not excerpting much or going through the details, you might want to have a gander at the actual ad — it’s here.
And it’s all about how Ernie Tremblay is an expert on drug discovery, and can decipher the science and talk to the doctors and get the inside skinny, then take the drugs that are making their way through Phase 2 and 3 FDA trials and make recommendations to trade them based on big moves the stocks should make around certain dates.
The volatility of biotech stocks around particular dates isn’t new to anyone who really follows biotech, there are thousands of analysts and investors trying to track biotech stocks and the dates on which they are expected either to have decisions from the FDA, to announce filings with the FDA, to have advisory meetings called by the FDA, or even to present at conferences and release new data about ongoing trials. For these development-stage companies, earnings announcements are usually an afterthought — it’s all about the clinical trials and FDA actions and whether their drug actually works and gets approved (and, sometimes, about how expensive the clinical trial process can be — and how often they have to raise more money by selling more stock).
It’s a flood of information, and there are hundreds of viable publicly traded companies who are active in fairly late stage drug development, so having a person who can track it all and make good recommendations is obviously of value (I personally have no idea whether Ernie Tremblay is any good at this or not, this is apparently a new letter they’re launching).
And they say there are hundreds of dates on his calendar already, of course, but there are some urgent ones that are coming up soon (there’s always urgency in a newsletter pitch — otherwise, why subscribe?). So I took a quick look at the hints regarding the first teased stocks:
“I want to talk about three opportunities that I believe are slam-dunks for substantial calendar gains in the coming weeks.
“The first one’s coming up fast – April 25th. And I expect a big pop…
“And as it takes off, we could be looking at as much as a 36-to-1 gain, or better.
“The market potential for this company’s new drug is huge. And I mean, really, really, huge.
“You see, according to the American Heart Association, there are 24 MILLION Americans who should be taking aspirin to prevent the recurrence of heart attack or stroke….
“Problem is regular aspirin use can lead to serious gastric ulcers. So a substantial number of people can’t follow their doctor’s advice….
“This company’s new drug appears to be the solution.
“It combines the blood thinning benefit of aspirin… along with a powerful proton-pump inhibitor drug, proven to help prevent the stomach problems regular aspirin can cause….
“It’s already the same pump inhibitor being successfully used as a co-ingredient in ANOTHER drug the company ALREADY markets….
“… this new drug combination has gone through two Phase 3 trials, as well as a long-term safety trial, and they both show clinically significant benefits.
“That’s why when they come up for FDA approval in April, I’m confident they’ll give us a nice “price pop” almost immediately.”
So who is it? This is Pozen (POZN). The drug they already market is VIMOVO, the combination of naproxen and esomeprazole. The new drug they’re expecting a PDUFA date on of April 25 is PA8140, which apparently is aspirin and omeprazole.
I know nothing and have not looked anything up, other than to tell you that POZN is a small $250 million company with a few approved products and a bit of revenue ($10 million last year).
Ernie paints a crazy rosy picture:
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