Mizrahi’s “World’s Top Billionaires Invest in the Biggest Cancer Breakthrough Since Chemo”

What's being teased by Park Avenue Investment Club for their special report, "How to Make 10 Times Your Money On The Single-Shot Cancer Blaster"

By Travis Johnson, Stock Gumshoe, January 8, 2018

There’s a clear winner in the “what readers are asking about” sweepstakes this morning, and it’s the latest pitch from Charles Mizrahi for his Park Avenue Investment Club (currently $99/yr) — so that ad must really be making the rounds, and we’ll fire up the Thinkolator to get you some answers today.

The pitch is clearly about cancer immunotherapy, broadly speaking — plenty of references are made to big immunotherapy drugs and advancements, and the somewhat generic quotes from lots of medical folks about the huge potential of immunotherapy. I’m no expert on medical matters (that’s why we have two other authors here who chime in often on the topic), but clearly there has been a huge push over the past decade to develop immunotherapies, and in many cases they are making a huge difference for patients…. and sometimes, to investors in the companies whose drugs have made good progress in clinical trials or, in the most advanced cases, been approved for sale.

So yes, cancer immunotherapy is big… we can just start with that as a “given” … though it doesn’t, of course, mean that every company pursuing therapies that use the body’s immune system to fight off cancer will make you gazillions of dollars — as with all new drugs and therapies, a lot of them will fail. That has started happening with some immunotherapy drugs as well, recently, despite the rush into the space (summed up pretty well here in a Medscape article, if you’d like some perspective).

And that’s about the extent of my understanding of this space, so let’s just jump in and ID the stock for you… ready?

Here are the clues:

“Recently, the FDA made what they called a historic decision.

“It agreed that the single-shot therapy developed by the $200 billion pharmaceutical giant Novartis should be approved for use outside of clinical trials.

“It became official on August 30, 2017.

“But everything is just getting started…

“‘This is a brand new way of treating cancer,’ says Dr. Stephan Grupp.

“‘No one ever thought it would be possible to commercialize a therapy like this,’ says Dr. Carl June.

“It’s expected that the $108 billion firm Gilead Sciences will receive approval in the coming months.

“And while there will be a number of ways to profit in the coming years, there will not be another opportunity like the one before you today.

“If you were to make only one biotech investment in the next decade, this small Boston-based company is it.

“I have never been more certain about anything in my entire life.”

First, we have to fight our brains a bit and set aside the hyperbole — pretty much every investment teaser ad includes a line like that last one… “I’ve never seen this kind of potential,” or “if I were to choose only one investment” or “this is the best opportunity of my career”… if you took them all seriously and went “all in” on each idea pitched with that kind of line, we’d all be broke by now.

But when it comes to fodder for the Thinkolator, “Boston-based” doesn’t really narrow it down so much when we’re talking biotech… what other clues do we get about this specific immunotherapy company?

“Dr. Kenneth Anderson of Dana-Farber Cancer Institute in Boston called the results of the treatment study ‘very remarkable.’

“And not just for how many patients responded but also for how well…

“As Dr. Carl June says, ‘it’s very rare’ to see everyone respond to a treatment….

“As JPMorgan says of this company in a recent report: ‘[It] is one of the more potentially transformative and disruptive companies we’ve come across in some time.’

“This tiny company’s revenue last year was only $26 million. But once its treatment hits the market, it could deliver a first-year revenue of $500 million.

“So, we’re talking about an incredible revenue jump of 1,823%.

“But remember…

“That would still represent just a fraction of the market for this cancer therapy, which is projected to reach $202 billion.

“So, from year two on, revenue could soar many multiples higher as the company gets a larger piece of the pie.”

So who is this? Thinkolator sez they’re teasing bluebird bio (BLUE), a pretty high-profile member of the immunotherapy gang, with a big partnership deal with Celgene (CELG) for their lead drug (bb2121, targeting multiple myeloma), and an $8 billion market cap. And yes, like many biotechs they’re headquartered in Cambridge, not quite Boston, but we’ll forgive Mizrahi his imprecision.

They have other products in development as well, including several CAR-T immunotherapies and a product called Lenti-D for cereral adrenoleukodystrophy (of “Lorenzo’s Oil” fame), but I suspect that bb2121 will drive their results and their news flow for the immediate future… and it certainly has in the recent past.

The general pitch for these kinds of stocks tends to be optimistic at the extreme, of course, and Mizrahi has some rose-colored glasses for us as well…

“The FDA approving the single-shot treatment for use outside of clinical trials could set everything in motion — rapidly.

“Very soon, the 14 million people who are diagnosed with cancer each year may be able to walk into their doctor’s office, receive a simple shot, and walk out with the peace of mind knowing that they’ve conquered the disease.”

OK, so yes, FDA approval for bb2121 would be a big deal for bluebird (and possibly for Celgene, as it tries to replace their aging fleet of multiple myeloma therapies and maintain dominance in that disease), but it’s not going to happen next week or next month… and it will start, if it comes, with fourth-line approval for use in patients who have exhausted a bunch of other options, and try to move up the ladder like other drugs… start with the most-dire cases, and try to prove that your drug is also better than the current “standard of care” treatments.

So you would probably need to have a pretty generous definition of “very soon” to take that statement seriously. It’s possible, but it won’t even be used for all multiple myeloma patients within the next five years, let alone all cancer patients. Their other programs are also very advanced in some cases, though like many biotechs it looks like bluebird has started out with relatively small “orphan” or rare diseases, where they can prove efficacy and get to market relatively quickly and cheaply before trying to break into what we might crassly call a “mass market” disease.

The big deal for bb2121 recently, and for bluebird’s stock price, was the release of fantastic response rates in their ongoing clinical trial and their presentation that cited the “Rapid and expanding clinical program with Celgene for this potentially groundbreaking therapy.” You can review the investor presentation here, and there’s a quick note from the Motley Fool analyst here about that bb2121 news from mid-December. They’ll also be presenting at the JP Morgan Healthcare conference tomorrow, so that might gin up some more interest — though I don’t have any idea what they’ll say, and it certainly might not be new.

And that’s about all I can tell you. Dr. KSS, who follows biotech for the Irregulars, has written about bluebird in the past, noting at times how popular and news-driven the stock can sometimes be despite the very small size of its clinical trials to date, and it has come up on his discussion threads a few times (though not much recently), and I certainly don’t know whether BLUE will end up a success or not… all I can tell you is that this is the stock Mizrahi is pitching as his “Single-Shot Cancer Blaster,” and I’ll leave you to go forth, researchify, and fill in the blanks to decide whether it’s a fit for your portfolio.

If you’ve ever looked into bluebird, please comment below to let us know what you thought… and if you’ve tried out Park Avenue Investment Club, please click here to let your fellow investors know what you think of Mizrahi’s service. Thanks for reading!


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37 Comments on "Mizrahi’s “World’s Top Billionaires Invest in the Biggest Cancer Breakthrough Since Chemo”"

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Dr. KSS MD PhD
Author
45263

$BLUE is an interesting company, but extracts too much mileage from too little clinical data and has a long way to go proving long-term safety and efficacy. It’s overvalued by any sane reckoning now, and will likely be absorbed into $CELG in such a manner as to short-circuit any real “cashing out” by longs. I say watch with interest as proxy for sector but don’t dare invest. But, hey, no investing advice intended. No position long or short in $BLUE shares, though I was long the stock in its earlier years and did make money.

Dr G Smith
Guest
0

Agreed. Single patient events drive the new cycle of this field but may not be predictive of the results of the overall clinical trial. This is one strong player in a group of companies in field, some strong and many innovative but limited in funding as well as clinical development and pricing/market access (PMA) experience. These companies tend to influence each others stock price. A few will break out with rare disease options at nearly the same time but first mover advantage may be secondary to PMA expertise.

2168216821
Irregular
2

I recommended BLUE in 2013 when it was around 30-i have no current position likeDr. Kss-have been off Gumshoe till I recently returned happily

Fabian
Guest
0

Interesting, I have an appointment this afternoon to remove one of these dangerous melanoma cell cluster from my back, with a scalpel. Progress is too slow.

jackbo1
Irregular
0

Fabian, as a victim of Mult. myeloma I too find this interesting. I was diagnosed in 2011 an have undergone six different therapies in addition to a stem cell transplant and radiation. I turned 76 yesterday and appear to be in remission for now. Hopefully one of these new regimes will be the answer, altho, as Travis points out, timing is everything. My $ is in Cannibis these days like ken the jazzman below. Best to all

jazzman777
Guest
0

most of us can’t buy into $170 stocks..and there’s much more money to be made in MSRT, AVXL( Alzheimer),CBWTF,SLB,UEIC and EMMBF Go Marijuana!

takeprofits
Irregular
332
I probably shouldn’t be commenting on a biotech stock because I seriously doubt that no matter how many billions of dollars invested in research ANY company will ever come up with a “magic pill” cooked up in some laboratory. that actually permanently cures the disease, people believing that fairy tale are dreaming in technicolor. CANCER is a “lifestyle disease” pure and simple whose CAUSE has been known since the 1930’s based on the pioneering research of Dr. Otto Warburg, a Jewish doctor saved from the death camps on the orders of Hitler himself because he was absolutely paranoid about cancer… Read more »
JayBee
Guest
0

I wonder if these comments are from the real Myron Martin or an impostor. I say that because I believe that I have read these exact comments from a Myron Martin previously. It seems to me that he can be quite long-winded with his comments from time to time, especially when writing about natural resources, but he doesn’t seem like the “cut and paste” type of person who would keep using the same comments for a particular topic, which in this case is immunotherapy.

Steve
Guest
0
A quick comment. Myron is essentially correct. I’ve been in the cancer research “biz” for over 40 years. The immune-boosting strategy has been known for eons. The current research in this area is still trying to marry the fundamentals with an ongoing drug scheme to maximize the revenue stream so it deeply compromises the prospects. True some of these prospects may make money with FDA approvals — but do not expect it to be all that much help if you actually have to treat your own cancer. If you ever do have a HUGE cancer break-through, the VERY first thing… Read more »
John
Guest
0
There is no exogenous cure for any disease; just an abundance of suppressors of symptoms. Naturopathic approaches based on diet, water, air and lifestyle have produced stunning improvements in health, including recovery from cancer, but they can never claim to do so for fear of litigation. Animals are the best teachers, as we have now strayed too far from basic instinct. Watch what a dog does when it becomes ill: 1) eat grass to provoke vomiting to alleviate the stomach of the burden of digestion; 2) find a source of clean water; 3) sleep, drink water, sleep, drink water…Fasting is… Read more »
macklin59379
Irregular
0

Your list of naturopathic approaches might well include faith in a Supreme Being. Mine is God, who started this whole thing and hasn’t left us out in the cold, as some might believe.

4lllls
Guest
0

Amen

Larry707
Guest
0

Sounds good! Any recommendations for good naturopathic approach resources for improving my health?

John
Guest
0

An Australian fellow named Kenneth S. Jaffrey was the most convincing practitioner of Nature Cure that I ever met. A list of his books can be found here: https://catalogue.nla.gov.au/Search/Home?lookfor=author:%22Jaffrey%2C%20Kenneth%20S%22&iknowwhatimean=1

I don’t know how many of his works are readily available, as he died several years ago, but some can probably be found as PDFs on the web. Alternatively, two of his former students have a practice in Australia and would be good sources of information: http://www.hintonhealth.com.au/nature-cure/natural-healing

macklin59379
Irregular
0

IMHO, the FDA won’t ever let a REAL breakthrough cancer drug hit the market. It receives too much money from the pill pushers and the FDA would lose all that income because the pill-pushers would lose theirs. Which, of course, the FDA shouldn’t be receiving money from drug companies in order to keep their pills on the market anyway, but their first name IS “Federal”.

catherine
Irregular
23

Myron, I believe you are referring to Dr. Mark Stengler in your last paragraph. Ordinarily I wouldn’t mention a typo, but since you suggest googling his name, I want to help others find him.
Thank you for sharing your thoughts – they’re presented well, and I haven’t read Without Cancer yet.

Tarantula
Guest
0
So true! And you can find even more information by watching the Truth About Cancer series that airs for free a couple of times a year. You don’t even need to pay for the videos …. just watch what you can, make a list of the speakers, research them and follow them online. All of the information is out there! To get the concept of the depth of greed and deceit, watch Del Bigtree’s latest passionate “Truth About Cancer” speech regarding vaccines that is available online for free. Apply the same concepts to cancer treatment or any standard treatment for… Read more »
macklin59379
Irregular
0

Thank-you, “takeprofits”. At last a fact-based introspect of a subject that stirs all our emotions.

4lllls
Guest
0

You might like Dr. John Bergman on YouTube. I watch him a lot. Down to earth.

mjorrin
Irregular
121

Dr KSS, as usual, is bang right. I wrote about bluebird back in February 2015 when they were first collaborating with Celgene & also Baylor, The prospects looked promising at that point. I had been in and out of Celgene in 2013 & did very nicely indeed. Celgene looked better than bluebird in 2015 also, but I held back & will do so at this point also. bluebird has other arrows in its quiver & may eventually be a gusher, but who knows when?

loving10
Irregular
2
I also agree with Myron’s comments. I was diagnosed with breast cancer in 2016 and sought out natural treatment. I refused to do chemo, radiation or surgery. I believe those will only kill you quicker or at best slow the progression of the disease with a lot of pain and lack of quality of life included. In 2017 I was referred to a doctor named Jason Williams who uses cryotherapy and immunotherapy to effectively heal cancer. I am currently feeling great and this is only a month after I received the therapy. There are many fine and promising natural healing… Read more »
Larry707
Guest
0

Good info but your link doesn’t work. Can you post a corrected link?

Investor Clouseau
Irregular
6

Anyone know what the heck Bill Gates is doing in the dessert lately? I don’t subscribe (anywhere but here) or get email teasers but I’ve seen this Foolish headline a bunch lately on MSN.com;

Apparently 87% of people walking around have no idea what this technology is, and I’m clearly part of that majority. I was a little afraid to click any links or input my email, thought I might ask here to try and appease my growing curiosity. How many millions have I already missed out on??

https://www.fool.com/ext-content/bill-gates-secret-project-requires-a-blank-slate/847/?psource=erbmhp7410000012&utm_campaign=shark-gatesproject&campaign=rb-shark-tank&utm_source=msn&waid=8766&utm_medium=contentmarketing&paid=8766&wsource=erbmhpwdg0000013&cellId=0&testId=gates-project-advert

#Fool #Teaser

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Dr Strangelove
Irregular
0

I was in BLUE for awhile on the rumor and made some money on the news. I no longer have a position in BLUE. While I am hopeful for the research that BLUE is doing, BLUE stock is too pricey. I am, however, still interested in their licensing and partnering arrangements.

Jill
Guest
0

Well, regarding cancer therapies, I’m all for CBD (without THC). This is non-psychogenic cannabis from the hemp plant, which gives the benefits without getting “high”. I actually use CBD in honey and get mine from a place called Bumblebwell.com. I don’t want to wait around for BLUE to get approved for anything. I prefer this proactive way of avoiding getting cancer in the first place. I understand CoQ10 is also a very important supplement to take.

4lllls
Guest
0

Pay d Arco and Epsom salts. Heals much. Animals also can be healed.

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