Bonner’s “The One Cure for 6,000 Diseases” Stock

What's the first teaser stock from Jeff Brown's Exponential Tech Investor?

By Travis Johnson, Stock Gumshoe, March 16, 2016

Bonner & Partners, which is yet another spinoff of Bill Bonner’s Agora publishing empire, has beefed up its newsletter offering a bit by launching a new newsletter that’s seems like it’s in the same vein as Agora’s Breakthrough Technology Alert — an expensive letter focused on new technologies and, more specifically, on the early stage stocks working on those technologies that they think will make you rich.

That letter launched a few months ago, and this is the first teaser I’ve seen for it — the editor is Jeff Brown, who apparently worked in a few tech companies but hasn’t been an investment pundit in the past, and the newsletter is called Exponential Tech Investor. Brown has said in interviews that he was an exec for Qualcomm, Juniper Networks and NXP Semiconductor, so it sounds like most of his specific expertise is in chips and networking — and the areas where he indicated he was spending a lot of time back when the letter launched were artificial intelligence, cybersecurity, robotics, additive manufacturing, and the trends in genomics, bioinformatics and DNA sequencing. This “secret” pick, the “one cure for 6,000 diseases” pitch, is obviously somewhere in that genomics and biotech neighborhood.

And, of course, the way they love to sell their newsletters is by promising that they’ve got a handle on a hot new stock… and all you need to do is pony up your $3,000 to learn all about it! (OK, fine, it’s “on sale” for “charter members” for $1,750). Whether or not the idea is any good, there’s no sense in committing to a subscription just to get the name and ticker of a “secret” stock — that sets you up to fail (if you spend $1,750 to learn about a stock, you’re going to be so biased to want to buy it instantly that you won’t be able to think straight). Maybe the newsletter will be great and educational and maybe you’ll love it — but don’t buy it just to solve the riddle they’re dangling in front of your nose. That’s what your friendly neighborhood Stock Gumshoe is here for — to solve the riddle, name the stock, and let you think for yourself.

So let’s get started with a look at the ad, shall we? This is how it opens:

“Small Boston firm has JUST gone public with a cutting edge technology that has the potential to be:

The ONE Cure for 6,000 Diseases

“I’m revealing the details on a ‘day one’ investment in one of the most radical advances in medicine of the last 100 years…

“Hi, I’m Jeff Brown, the science and technology analyst for Bonner & Partners investment research.

“I have two critical questions for you today:

“Do you want to live a long, healthy life?

“And do you care about getting rich?”

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Yes! Yes! Tell me more!

“Because this small company at the forefront of the most important medical breakthrough of the past 100 years has JUST had its IPO.

“So, if you want to get in as close to the ‘ground floor’ as you can, time’s of the essence here…

“This company controls the most important medical breakthrough of the past 100 years.

“This ONE breakthrough holds the potential to annihilate 6,000 diseases.”

Sounds pretty awesome, right? This is all about gene editing to cure disease. More from the ad:

“Now, just 63 years after Watson and Crick, the secret to repairing damaged DNA may be unlocked…

“So, by enabling your DNA’s genetic code to be rewritten, this new technology’s potential amounts to rewriting your body’s destiny….

“Hank Greely, a Stanford professor, recently said this:

‘This breakthrough is the Model T of genetics. The Model T wasn’t the first car, but it changed the way we drive, work, and live. This genetic breakthrough has made a difficult process cheap and reliable. It’s incredibly precise.'”

So what does this company do? More tease…

“… it repairs individual genes by cutting out bad genes and replacing them with good ones.

“That’s the mechanism behind how this targeted therapy can destroy 6,000 genetically-based diseases….

“… this gene repair technology is the culmination of all other DNA research, including the research that brought the breakthrough profits to Amgen, Biogen and Celgene.

“Now, I certainly can’t guarantee that the company I want to reveal today will return 153,000%.

“In fact, I can’t guarantee that the stock will go up at all.

“But if this small company does just 10% as well as Amgen did…or even 1%…you’re still looking at a fifteen-bagger…”

And then we get some hints about the investors who are behind this company, and about their balance sheet…

“… you can see why this breakthrough has caught the attention of billionaire investors, including the richest man on the globe — Bill Gates.

“These big name institutions also joined in that funding round:

  • Fidelity
  • T. Rowe Price
  • Google Ventures
  • Khosla Ventures
  • Omega Funds
  • Alexandria Venture Investments…

“On top of that, a $2.5 billion-sized cancer drug giant has pledged an additional $47 million in support for specific applications that could end up bringing our little company up to $250 million in cash.”

So what is it? If you pay attention to biotech stocks you’ve probably already got a guess… but we do also get one more key clue:

“… this story is so young, this technology so new, that, until early February of 2016, there was literally no publicly traded way for you to invest in this space….

“There are a handful of wholly private companies involved in this technology….

“But the best one — the most well-funded and scientifically-advanced of the four — went public on Wednesday February 3rd, 2016.”

So there’s our easy answer, barely even had to shake the dust off the Thinkolator to tell you that yes, this is Editas (EDIT).

Which did indeed go public on February 3, along with another biotech, as the first company to go public in the dastardly market of early 2016. Editas has licensed CRISPR gene editing technology from one of the pioneers of that technique, though this whole area is mired in patent dispute at the moment — more than one researcher claims to be the real innovator in this space, and EDIT’s quick fall a week or two ago (after a spectacular run following the IPO) was largely connected to new patent worries.

I don’t know anything about gene editing technology, so I can’t pretend to have an opinion on how the legal disputes over patents will work themselves out — it seems to be a bit of a soap opera, and there are a lot of startups and research labs in the space. EDIT gets a lot of the attention, thanks to the fact that they’re the first to go public… and perhaps thanks to big venture backers who have continued, in some cases, to buy following the IPO and therefore keep the price up (according to Adam Feurstein in this cautionary article). Our own Dr. KSS has also been very cautious on EDIT, noting that the technology is still limited, litigated, and probably many years from any possible therapeutic use.

The bull case for EDIT (or their patent competitors, I suppose) is that if someone has a patent on this “easiest and cheapest” way to edit genes, and that technique becomes widespread and is used to develop a lot of expensive drugs or other wonders, then the royalties on that patent could be enormous over time. Editas already has one decent-sized deal, with Juno Therapeutics, to license CRISPR for the discovery or development of new drugs (that’s the $2.5 billion company that has “pledged $47 million,” per the teaser ad), and EDIT does have plenty of cash — enough, they say, to get them through three years of furthering their R&D. The big picture excitement (and some of the patent fight backstory) was covered pretty well in a cover story in Wired last August that you can see here if you want more background. It is a fascinating story, and from my perspective it’s also highly speculative — I don’t know how to guess at what their odds of success might be, but the hoped-for end game of “royalties on all gene editing” does hold out the promise of far greater riches than does “develop one drug to treat one disease.”

And that’s about all I’ve got for you on EDIT — sound like the kind of “Exponential Tech” you’d be interested in? See profits or pitfalls ahead? Let us know with a comment below.


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modernrock
Irregular
March 16, 2016 2:32 pm

FYI this teaser went out the week before the EDIT IPO, been a heck of a runner if you were able to hold from 16 down to 12’s

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Dr. Fc
Dr. Fc
Member
March 16, 2016 4:26 pm

I know something of CRISPR, and even more about the patent fight.
I predict the attorneys will get rich long before the investors.
Short version, UC may have been first to invent, but MIT paid expedited patent exam and got the first patent. The whole mess just entered patent interference proceedings.

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alanh
Reply to  Dr. Fc
March 16, 2016 5:13 pm

Dr.FC: I hope you will join us on the Dr KSS biotech threads.

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Lawrence Lieberman
Irregular
Reply to  Dr. Fc
March 19, 2016 2:02 pm

Article below is one year old and there may have been subsequent legal action…companies discussed are mentioned but nothing about a lawsuit by Cellectis with Editas, CRISPR or Intellias.
Recently a lawsuit brought against Precision Bio was lost by CLLS.

http://www.biopharma-reporter.com/Markets-Regulations/Cellectis-patent-surprises-biopharma-could-block-CRISPR

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Ro
Ro
Guest
March 17, 2016 7:44 am

There are two issues. First, the patent situation is very contentious with Editas and Cellectis already in a legal case to decided who has the original patent. A panel of three USPTO (US Patent Office) judges, led by Deborah Katz, will hear a challenge to the patent office’s 2014 decision awarding a key CRISPR patent to Feng Zhang of the Broad and MIT (Editas) rather than Jennifer Doudna of UC Berkeley. T hree companies are using CRISPR to develop human therapies — Editas Medicine (cofounded by Zhang, Church, and others), CRISPR Therapeutics (cofounded by Charpentier, based on her share of the hoped-for UC patent), and Intellia Therapeutics (launched by Caribou Biosciences, which Doudna founded). There are likely to be additional patents that will be required to be used to bring the methodology to fruition and they will be held by a number of different people and institutions. The second issue is that CRISPRs have a high probability of what are called off target hits. This is not a problem for research into gene function or probably for the development of genetic changes in plants or animals but crucial for treatment of human diseases. At the moment there is only one method that can do gene modification with high accuracy, that is Sangamo (SGMO). They are using an older method called zinc finger nucleases (ZFN) . This company has three or more treatments currently in human trials. Sangamo holds all the patents for this method and is perhaps a better bet succeed in curing of human monogenic diseases.

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alanh
Reply to  Ro
March 17, 2016 12:58 pm

Ro: I hope you will join us on the Dr KSS biotech threads.

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hendrixnuzzles
Irregular
Reply to  Ro
March 19, 2016 1:36 pm

$CLLS…hi Ro. Where did you get the information that $CLLS and Editas are
involved in patent litigation ? What is the patent involved ?

I saw that $CLLS did not win its recent suit case against another company but did not see anything recent concerning Editas.

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Lawrence Lieberman
Irregular
Reply to  hendrixnuzzles
March 19, 2016 2:00 pm

Article below is one year old and there may have been subsequent legal action…companies discussed are mentioned but nothing about a lawsuit by Cellectis with Editas, CRISPR or Intellias.
Recently a lawsuit brought against Precision Bio was lost by CLLS.

http://www.biopharma-reporter.com/Markets-Regulations/Cellectis-patent-surprises-biopharma-could-block-CRISPR

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Greg Keen
Greg Keen
Member
March 17, 2016 5:40 pm

Hello, i just tried to place an order on this, but i got a flash warning that you have a “phishing site here. What’s up with that?

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mjorrin
Irregular
March 17, 2016 6:38 pm

Gene editing by means of CRISPR might well prevent some individuals of acquiring a genetically-determined disease – one at a time., As far as curing 6000,, don’t hold your breath. On the other hand, interest in gene editing is really, really high, and EDIT could well make a bundle. Eventually.

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arch1
Member
Reply to  Michael Jorrin (AKA Doc Gumshoe)
March 17, 2016 8