What’s up with Stansberry Venture’s “Major FDA Announcement” Pitch?

Sniffing out the teased Obesity stocks from Dave Lashmet's Stansberry Venture Technology

This is the pitch that sent a bucketful of questions heading our way yesterday:

“Last Week’s Major FDA Announcement Officially Kick-started a Massive Opportunity

“A disease that 42% of Americans suffer from can now be cured. Our analyst tracked this story from the beginning, and he’s finally breaking his silence to reveal the name of the company that could soon produce the biggest drug in history. Its stock could climb 250% in the coming months alongside THREE other plays with 1,000% potential gains.”

Given the Biogen news this week with aducanumab, I thought this might be Lashmet following up on that Alzheimer’s Disease story… along the lines of, “if they’ll approve that drug, suddenly those other Alzheimer’s drugs don’t look so risky”… but no. He has pitched Biogen (BIIB) in the past, but today he’s again talking up obesity.

And obesity is probably the only untapped market that’s bigger than Alzheimer’s Disease, at least if you think of it broadly… so that’s where we’re headed today, as he tries to sell subscriptions to his Stansberry Venture Technology ($5,500/yr list price, though high end letters are pretty much never pitched at list price — it’s “on sale” for $2,500, no refunds, so I guess the undercoating and floor mats are free). More from the ad:

“This is something you never see. Up to 70% of the United States population could eventually be prescribed these drugs.

“To give you some perspective, that’s 38 times more than the best-selling drug to date, the arthritis drug Humira.”

Humira is not the best-selling drug in terms of the number of people who get it, of course, it’s not even in the top 50 (many of which are generic). It’s the best selling drug in terms of dollars (last I saw, the average cost was about $5,000/month). If a drug was priced anything like Humira and prescribed to 70% of the US population, money would lose all meaning, so don’t get too excited about that (that would be about $12 trillion dollars in annual sales, by my rough math, which is about 2/3 of total GDP).

And a little more about the big picture:

“I’m talking about a totally new class of drugs.

“They’re targeting a disease that kills around 5 million people every year.

“This disease steals an average of 15 years of life from those who have it.

“Including 42% of Americans… with more joining the list every year.

“There’s never been a cure, or even an effective treatment.

“But that’s all about to change.”

They give away one of these “freebie” companies, which turns out to be Novo Nordisk (NVO) (more on that in a moment), but the real tease is for the three small fry:

“… three of these companies are very small – around 100x smaller than companies like Pfizer or Abbott.

“Which sets them up for massive potential gains.”

So that’s our first clue, albeit a squishy one — Abbot (ABT) and Pfizer (PFE) have market caps of around $200 billion, so we’re looking for companies with a market cap that maxes out somewhere around $2 billion.

What else do we learn about this dread disease?

“With heart disease there are 74 different drugs on the market.

“The disease we’re taking about today has five approved drugs. And none of them work… except for the drug that was just approved by the FDA.”

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