Solved: “WARNING: ‘Golden Pill’ May Make You Rich… ” tease
by Travis Johnson, Stock Gumshoe | September 26, 2018 8:48 am
Ray Blanco says the "secret code" on a pill bottle could be worth $539,325... huh? Let's see what he's actually talking about in his FDA Trader teaser ad.
Ray Blanco[1] seems to love pitching a good “results coming soon” story for his FDA[2] Trader ($1,495, no refunds) newsletter over at Agora[3], and this one is no different from dozens of others he has touted in the past… though the stock is one I haven’t seen him tease before.
OK, fine, yes, I know what the stock is and this one was a pretty quick solution — which is why I’m getting it out to you so early in the day… but still, let’s go through the story and give you a taste of the ad, then I’ll share that answer with you.
Here’s what caught my eye:
“The drug-maker will print a secret code on the pill bottle.
“It’s easy to identify the code, and it could be worth up to $539,325 — or 452 ounces of gold[4].
“Main Street Americans have already started pocketing thousands, like Keith Hudson who banked $200,000.
“BUT YOU MUST TAKE ACTION BEFORE SEPTEMBER 28.”
That’s hooey. The code part, at least — Blanco spends a while talking up these “secret” codes on pill bottles that can help you find riches, and that’s a complete red herring… yes, every pill bottle has a number on it, and each drug has a unique code, but it’s not at all secret — it’s just a number that’s organized by the FDA and used for reporting and identification… think of it like the barcode number on any other product. It shouldn’t mean anything to investors, other than to reiterate that yes, a drug that is available commercially will have a code (called a National Drug Code, NDC). You can search the NDC directory here[5] if you’re curious, but I’ll warn you — for most of us, it’s boring and meaningless.
And how about the “September 28” bit? That’s a reference to when he thinks there will be some sort of data release that should have an impact on the stock price. Here’s more:
“The medical world awaits September 28 with anxious enthusiasm.
“On that day, heart disease — the No. 1 killer in the world — could fade to black.
“As you read this…
“Some very sick patients — 800 of them — are participating in a clinical trial.
“The trial is a final hurdle, if you will — and it’s wrapping up any minute.
“Upon favorable results, the ‘Golden Pill’ will hit every pharmacy shelf in America, and likely become the nation’s latest blockbuster drug — a la Lipitor[6] and Plavix.”
Blanco says this is “the most important medical trial in human history” because it’s the first one to block the root cause of heart disease… and because it’s owned by a “junior biotech” and could soar to join the ranks of Pfizer, et al on the strength of this drug, which “blocks cholesterol[7] at the very source of it — during the liver’s biosynthesis process.”
What kind of gains? I thought you’d never ask… more from the ad:
“It took over $250 million and 20 years for the Golden Pill to sit on the brink of glory.
“Make no mistake, though — these final hours will be extremely explosive.
“That is, because the drug-maker has only one product — the Golden Pill.
“So with favorable trial results on September 28 — the stock price could blast violently vertical.
“It’s why I’m forecasting a 5,000% gain, beginning with a super-spike on Announcement Day.”
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OK, so the ad goes on and on… but we already know where it’s going. And we are urged to remember that yes, a company that has only one product in development can also fall sharply when expectations about that product change.
This is, sez the Thinkolator, another pitch for Esperion Therapeutics (ESPR)[8] and its bempedoic acid[9].
That drug carries high hopes as a possible next big anti-cholesterol drug that can dramatically lower LDL-C levels in the blood and, they hope reduce risks of cardiovascular disease[10]. And better yet, it might be much cheaper than the PSK9 drugs and more effective than the statins[11]… so the efficacy and safety are being watched closely, as with any drug where the potential exists that it could be very widely used… and the Phase III trials have brought a lot of volatility to Esperion’s stock price over the past year or so, as did earlier trials back in 2015:
[12]
ESPR[13] data by YCharts[14]
Just this year, an earlier readout from one of the Phase III trials had a higher mortality rate than expected, and investors freaked out and sold the stock down by 40% or so… then another study reported more encouraging results and the shares recovered to $50 or so last month, and, yes, there is another Phase III trial that is expected to generate some published results by October… so September 28 would indeed be the last day to buy if you want to have the best chance of owning shares before that data comes out (not that they’ve promised a particular day, but October starts on Monday).
So the biggest study they’ve reported on yet scared people, but the most recent report was at least relatively encouraging… and it seems, from number of patients, at least, that this October data release will be the next big one. They are already planning to file their NDA for approval in the first quarter of next year, so it seems fairly likely that the drug will move ahead with an application for approval, and the company says confidently that they expect to be selling the drug commercially by 2020, but the results of these trials will obviously help to inform the FDA’s decision… and, perhaps more importantly, will help investors to begin thinking about whether this is going to be a small-time drug just for very-high-risk people with wildly out of control cholesterol, or will be a widely prescribed multibillion-dollar bonanza like the statins.
In case it’s not obvious from my previous comments on biotech stocks, I have no idea which way it will go. But that’s the “Golden Pill” being touted, and there is a catalyst coming soon — you can see the basic rundown in their most recent news release with those positive top line results[15] here, and their more comprehensive Investor Day Presentation from July here[16].
This is a stock I know a fair number of readers have been following, partly because our former biotech columnist Dr. KSS[17] was a big fan (I don’t know whether he still likes it), and partly because other pundits have also been touting it — including Dave Lashmet[18] back in July in a Stansberry Venture[19] ad we covered here that similarly referred to it as “the most valuable drug in development, anywhere.”[20] The potential market is certainly big, the story is compelling, and we’ll know more next week… if you’ve been following the Esperion story and have an opinion to share, I’m sure we’d all love to hear it — just use the happy little comment box below.
P.S. We’re constantly collecting reader opinions about the newsletters they’ve subscribed to, so we can all make more informed decisions — if you’ve ever tried out Blanco’s FDA Trader[21], please click here to share your experience with your fellow investors. Thanks!
- Ray Blanco: https://www.stockgumshoe.com/tag/ray-blanco/
- FDA: https://www.stockgumshoe.com/tag/fda/
- Agora: https://www.stockgumshoe.com/tag/agora/
- gold: https://www.stockgumshoe.com/tag/gold/
- search the NDC directory here: https://www.fda.gov/Drugs/InformationOnDrugs/ucm142438.htm
- Lipitor: https://www.stockgumshoe.com/tag/lipitor/
- cholesterol: https://www.stockgumshoe.com/tag/cholesterol/
- Esperion Therapeutics (ESPR): https://www.stockgumshoe.com/tag/espr/
- bempedoic acid: https://www.stockgumshoe.com/tag/bempedoic-acid/
- cardiovascular disease: https://www.stockgumshoe.com/tag/cardiovascular-disease/
- statins: https://www.stockgumshoe.com/tag/statins/
- [Image]: http://ycharts.com/companies/ESPR/chart/#/?displayTicker=false&startDate=09/25/2014&scaleType="eLegend=&source=&securities=id:ESPR,include:true,,&securitylistSecurityId=&securitylistName=&calcs=id:price,include:true,,&legendOnChart=&zoom=custom¬e=&recessions=&useEstimates=false&securityGroup=&maxPoints=850&partner=&correlations=&useHttps=false&endDate=&format=real&splitType=single"es=true&units=&title=
- ESPR: http://ycharts.com/companies/ESPR
- YCharts: http://ycharts.com
- most recent news release with those positive top line results: http://investor.esperion.com/news-releases/news-release-details/esperion-announces-positive-top-line-results-pivotal-phase-3-0
- Investor Day Presentation from July here: http://investor.esperion.com/static-files/978fb8ef-869c-4ee2-b54c-6ae7ec2bc59a
- Dr. KSS: https://www.stockgumshoe.com/tag/dr-kss/
- Dave Lashmet: https://www.stockgumshoe.com/tag/dave-lashmet/
- Stansberry Venture: https://www.stockgumshoe.com/tag/stansberry-venture/
- ad we covered here that similarly referred to it as “the most valuable drug in development, anywhere.”: https://www.stockgumshoe.com/reviews/stansberry-venture/stansberry-ventures-most-valuable-pill-in-development-anywhere-pitch/
- FDA Trader: https://www.stockgumshoe.com/reviews/fda-trader/
Source URL: https://www.stockgumshoe.com/reviews/fda-trader/solved-warning-golden-pill-may-make-you-rich-tease/
I don’t attention to Ray Blanco. I don’t trust him at all.
Agree, as soon as I see the names Ray Blanco, James Altucher, Tim Sykes, anywhere on the message, I delete it.
Too risky for me. Too many deaths in trials. Probably not caused by the drug, as some of the patients were very sick. Won’t matter, any more deaths stock will tank.
#Esperion (#ESPR) It seems to me that most people on anti-chlolesteral drugs are fairly healthy. Why would Esperion allow trial candidates to participate if they have some other underlying condition that could compromise the trial results?
I suspect they did that because it’s easier and cheaper to get approval for conditions where current therapies haven’t worked and the situation is more dire. If you go in looking for approval in a much larger disease that affects more people, where your drug is not as necessary or the weight of side effects could be more daunting, the standard for efficacy is higher (because there are already approved treatments that work pretty well) and the standard for safety is much higher.
AMRN just released results…
With a positive indication for similar conditions.
I am so tired of being hyped. Although these type of ads have been a great and costly learning experience for me. There are sooooo many of them. Also, cholesterol drugs have side-affects. Why not Google “natural cholesterol health care” and just be healthy without side affects. THANK YOU for shining the light you do. Sorry I’ve taken so long to thank you, it is long overdue.
Good point Rhea. Studies point to the fact that the more whole plant (whole grain, no flour, whole fruit, no juice, whole nuts, whole seeds not oils, and far less meat of all kinds) the greater the protection from diseases of all kinds are enjoyed. For most diseases, Vegan needs to be the treatment of choice for a few months before considerations of drugs IMHO. I was a dodo and a slob and should have been told of these studies, then pointed in the right direction and told to leave and come back in a month. Like that Seinfeld episode…”NO DRUGS FOR YOU! COME BACK IN ONE MONTH.”
Amazing how everything in so many fields is called “secret” as that one word is used by marketing platforms everywhere. I now avoid anything that claims to be secret knowledge. And, for sure, there will never be a cure for heart disease while Big Pharma is running the medicine show. Follow the thought process of what curing any major disease will do to the $4 trillion plus health care magic show. Fewer sick patients=less profits. Ain’t gonna happen until the entire medical system is blown up and reinvented to put curing people first. Also, get ready for September 30th when Trump is supposed to make some announcement affecting Bitcoin…or so say the ads I have seen. Sitting on the edge on my chair the rest of the week.
Just a FYI for folks with a cholesterol problem. Some pharmaceuticals are a dangerous solution to a simple problem. AKA cholesterol. This was told to me by my doctor and it has worked for my wife and i both. Lower your cholesterol by eating 3 Brazil nuts every day. Lowered my cholesterol to normal with no other meds or diet changes. So many natural things out there for solutions to simple problems.,cholesterol, gerd, nail fungus , sugar spikes,etc. Always do your research before buying in to the dangerous and expensive pharma solutions. This is not medical advice as im not a physician.
More evidence that cholesterol (LDL) has no effect on heart:
https://www.irishtimes.com/news/health/no-evidence-high-cholesterol-causes-heart-disease-say-doctors-1.3627093
Esperion to The Medicines Company? Their studies have shown (to date) even better results than approved PSK9 drugs, have continued when reviewed for safety and can be administered anywhere from every 3 months to every 6 months on an out patient basis. If priced appropriately, they could very well have potential use for the 100+ million patients. Stock has been off ~25% over the past two weeks. Not certain when data will break.
I sold my ESPR in early 2015 with a tidy 30% profit. I dodged a bullet as it soon dropped a lot. Didn’t repurchase at the bottom and don’t think I will now.
Since blood pressure and cholesterol-lowering drugs have become cheap and common, heart disease mortality has plummeted, and it ain’t because lots of people have swopped eating steak for Brazil nuts. The newer alternative cholesterol-lowering drugs will likely be taken up by the relatively small minority that isn’t able to bring their cholesterol levels to target, or who can’t tolerate the side effects. Bempedoic acid has potential, but before I would consider plunking down any cash I would wait for more certain clinical trial results. Forget about making a colossal killing.
Does anybody know anything about the new IPO pot stock coming out next Monday? John Boener and Willie Nelson are part of it.
Really? Willie might smoke up all the profits. LOL
Here you go friend. https://www.acreageholdings.com/
Whats this? A firm that helps investors?
This kind of slides away from the present discussion but has anybody an opinion on this most recent stock being pushed by dr. Kent Moors for supposedly a gas that they can now liquify and ship across the ocean to the Nations that need it. Supposedly they were stopped from doing so before because they didn’t have pipelines and expense was too much too make it viable. Is anybody heard anything about this 2 million-dollar company that now has the ability to ship LNG two countries overseas Africa Asia Etc via ship because they have the ability on the patent for liquefying the Natural Gas. According to him this company is ready to Surge forward and pretty much run this Market
The drug from Esperion (Bempedoic Acid) has a number of things going for it: it inhibits cholesterol synthesis at an earlier step than statins; does not affect its synthesis in skeletal muscle; this may be reason why seems much less likely to cause myalgia (often found with statins); lowers cRP, hence has anti-inflammatory effect (posiibly also involved in atherosclerosis); also reduces lipoprotein (a) that seems to have a smaller role in atherosclerosis. Made the mistake of buying a call option on it with an expiration date not far enough ahead and lost plenty myself!
Recently subscribed to his Biotech Insider etc,looking to create a late pension,I’m 72.I’m quite frankly pissed off watching videos that promise good trades only to find I have to shell out more money to get the ticker; when often a Google search will do the job.He is a great salesman.I was truly grateful to find you when I searched the golden pill stuff.Thank you.You make great sense, and no hype or money hungriness..Truly appreciated.
I too have for too long look to these publications for some help only to find out they are only created as a prelude as a lure to yet another web of financial promise…just far more expensive. Has anyone found any good advice from the initial round products such as this Ray Blanco piece?
Also I would like to play some marijuana Pennie stocks without paying $2000 for a publication! Any suggestions?
Thank you Travis. I just joined you today and like what I see so far.
I do my own investigation on these hyped up advertisements. This is how I come across you.
Bianco pitched the same stock again this week with “deadline” of December 1. Stupid me ,he caught me for 3 months. (Thank god I refused the one year) Will stay away from Bianco from now on. This is the third pitch on the same stock, all claiming to be a new “find” and claiming he was “risking” his career letting readers know about it!!!. So dishonest.