What’s Ray Blanco’s “$6.38 Trillion ‘Cure for All Cures'” Stock?

I received this pitch as late as yesterday evening, but it says "This Wednesday, February 6, the Tiny Company That Experts Call Their 'Top Pick' for the Year Will Reveal to the World the Biggest Discovery in the History of Capitalism…"

By Travis Johnson, Stock Gumshoe, February 7, 2019

The latest ad from Ray Blanco has been circulating and generating reader questions for about a week, though I just got it in my own email accounts for the first time yesterday evening… about an hour before the purported “catalyst” was about to come.

The ad is from Blanco’s FDA Trader (current $1,499, no refunds). Here’s the part that made me think I should check up on it:

“… on Wednesday, February 6…

“This tiny startup lab will stun the world with the biggest discovery in the history of capitalism…

“The discovery that has the $6.38 trillion medical industry speechless…

The potential end of all diseases….

“… when they make this announcement this Wednesday at 6:15 P.M. Pacific Time…

“It could result in a surge in the company’s value by billions of dollars.”

Yes, twelve years of sifting through promises much like this has made me somewhat immune to the profit-lust that they’re designed to evoke… but still, who can resist wanting to at least find out what the company is?

I have some sad news, though, Wednesday was yesterday… so you’ve missed your chance at billions of dollars, and it’s all over. Capitalism changed, disease is over, and the company surged in value by billions of dollars.

Kidding! It’s OK, you didn’t miss anything.

Or, to be more precise, you missed the announcement about an hour ago about the preliminary results of this “secret” company’s clinical trial… and therefore, you missed out on the chance to see your shares drop in value by 25% at 11am today.

Why do we know this already without even going through the clues yet? Well, because Ray Blanco sent out essentially the same ad in September, promising that the “world would stand still” when this company announced its results on September 5. And that time, too, the results were really released at a scientific conference at a time fairly close to Blanco’s “world stands still” moment, but they didn’t provide the earthshaking news investors were hoping for.

So I won’t delay you by going through all the clues again, which are mostly unchanged from September. Yes, this is again Sangamo Therapeutics (SGMO), which is the most advanced (in terms of maturity of the science and progress in clinical trials) of the gene editing stocks — mostly because the technology they developed, zinc-finger gene editing, has been around and in development for decades longer than the CRISPR gene editing technology.

It’s still awfully new in terms of testing whether or not it can cure disease, though, and that’s the reason for the ugly stock performance — they released preliminary data on one of their clinical trials back in September which disappointed, and released more data this morning that also disappointed. Probably mostly because investors are hoping for Blanco-like “earthshaking” news and the science is not providing that, even with a bit of optimism from Sangamo.

The CEO described the data that Sangamo released as “an encouraging first step in the translation of genome editing technology from basic research to genomic medicine,” and the lead study investigator used words like “preliminary” and “more data are needed” in his note in one of the press releases:

“‘The interim results from the CHAMPIONS Study provide preliminary evidence that in vivo genome editing occurred and that genome-edited liver cells are able to generate active IDS enzyme in patients with MPS II,’ said Dr. Joseph Muenzer, a professor of pediatrics and genetics at the University of North Carolina School of Medicine in Chapel Hill and a lead study investigator. ‘More data are needed to understand whether the small increases in IDS enzyme activity observed can translate into improved outcomes in MPS II patients treated with this first generation of SB-913. I look forward to reviewing additional data later this year from the five patients who have received the high-dose of SB-913.'”

So yes, there is good news — the treatment from Sangamo apparently didn’t make the disease worse or kill anyone, though there were some side effects. You can see the detailed presentation slides from the two different trials that were released