Investment Risk/Reward
Approx Positions: 15
Number of positions, portfolio risk, and returns may vary. These are estimates based upon our track record and historical data.
Chris Wood
Chief Investment Officer, Healthcare and Biotech
Jake Weber
Senior Analyst for Healthcare and Biotech
About the Editors
Leaning on their 30 years of combined investing experience, Biotech Millionaire editors Chris and Jake work hard to find the best small-cap stocks in the booming biotech market. With the help of the C.A.S.H. system, they minimize risk and maximize returns for their subscribers... often in the triple and quadruple digits.
What’s Waiting for You:
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Timely trade alerts whenever fast-moving events present the opportunity to Buy, Sell, or Take Profits
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Monthly deep-dive analysis with a new stock recommendation, plus a full portfolio review
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LIVE portfolio with real-time Buy/Sell alerts
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Weekly updates on the Biotech Millionaire portfolio companies and new developments in the sector
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Full access to all special reports and archived issues
The biotech sector is booming—and it shows no sign of slowing down anytime soon.
The IPO (initial public offerings) market is an important yardstick for the health of the biotech industry.
In the first five months of 2020, we saw the launch of 21 biotech IPOs... for an amazing average gain of over 82%.
There’s a common thread among the stocks that rise to the top of Chris Wood and Jake Weber’s Buy list: Their very lifeblood is the search for treatments and cures for today’s most debilitating and deadly diseases.
And right now, the FDA’s willingness to fast-track certain vital treatments has led to an overall trend acceleration in biotech. That’s why right now is the best time in years to get into the sector.
But it won’t do to blindly jump into the biotech pool. With the industry growing faster than ever, it’s never been more important to know every detail about the companies you invest in... and position yourself in the right stocks at the right time.
The typical life cycle of a biotech stock consists of four phases: development, early testing, advanced testing, and FDA approval. You see a lot of buying and hype when a company approaches a catalyst event—followed by “doldrum” periods without significant news from the company.
But when these stocks are moving,
it’s like an explosion.
Chris and Jake’s strategy is to buy before the hype (red circles) and sell at peak euphoria (blue circles).
Biotech Millionaire portfolio company Equillium (EQ) shot up 731% in ONE DAY after its business partner received emergency-use approval in India for the treatment of one of the main causes of death in COVID-19 patients.
Enter the editors’ proprietary 5-point C.A.S.H. system that emerged from thousands of hours of research. All of its five criteria must be met before Chris and Jake will recommend a company to their subscribers.
C — Catalysts
Catalysts are known near-term events that are likely to drive up the stock price. For any company to even have a chance to make it into the Biotech Millionaire portfolio, it needs at least one catalyst.
Catalysts the editors look for are things like positive results of a Phase 1, 2, or 3 clinical trial, a possible acquisition by Big Pharma, or a pending FDA approval.
These events—or even investor expectations for the outcome of these events—can catapult a biotech’s stock price into the stratosphere.
A — Addressable Market
This is the size of the potential patient population for a new drug or therapy. To be financially successful, it needs to have a good-sized potential market to move the needle on the stock’s valuation.
This doesn’t necessarily mean every drug needs a giant target market. It can be a huge plus for a company if it treats a rare disorder but is the only treatment available.
The FDA grants special “orphan status” to drugs that treat rare diseases with less than 200,000 patients... and a drug that costs $50,000 per treatment only needs 100,000 patients to have a $5 billion market.
S — Science
Clinical trials are extremely rigorous. Only 10% of drugs that enter into clinical trials will eventually be approved. So part of Chris and Jake’s research is to dig deep into the science of new, promising biotechnologies.
For example, new drugs must prove they’re more effective and have fewer side effects than existing drugs. That’s especially tough in a segment like cancer drugs where the competition is huge.
H — Hype
Even with viable platforms, some biotech companies never get off the ground... simply because their technologies aren’t “sexy” enough or are too hard to understand for laymen.
On the other hand, a captivating story that grabs investor and media attention and creates “hype” can really drive a stock up. It is also the reason that stocks often shoot up well before a catalyst event occurs.
Cash
Cash is another important factor. It’s critical that a company has enough funds to make it through the development phase. If it burns through its cash too fast, it may have to issue new stock to raise money—thereby diluting the existing shares and driving the price down.
When the Biotech Millionaire editors see this dysfunctional pattern, they won’t recommend the stock to their subscribers.
No great loss, though, because there are currently dozens of potential winners in the sector... with no end in sight.
At the time of this writing, Biotech Millionaire subscribers were sitting on an average portfolio gain of 58.5%.
This is truly the most exciting time in years to be a biotech investor.
Join Biotech Millionaire today to take full advantage of Chris and Jake’s combined 30 years of investing experience—and receive deep-dive analysis and winning stock recommendations month after month!
You’ll never be left to your own devices. You’ll receive continuous guidance from the editors, with weekly updates on select portfolio stocks and timely trade alerts when things start to heat up.
