Dear Reader,
Today I want to talk about a rare profit opportunity hidden inside Trump’s “Big Beautiful Bill”...
There’s a provision in Trump’s Big Beautiful Bill for rare diseases and “Orphan Drugs,” and this is a very, very big deal.
First of all, most known diseases are considered “rare diseases”...
There are about 10,000 known diseases worldwide and 7,000 to 8,000 of them are considered rare.
In the U.S., a rare disease is defined under the Orphan Drug Act, which passed just this July, as affecting fewer than 200,000 patients nationwide.
Collectively, these diseases affect 1 in 10 Americans.
Right now, the biotech sector is the cheapest sector in the market - it’s just been completely obliterated the past few months, especially since the election.
But money is coming back into it in a huge way. There’s a few reasons why.
The newly passed Orphan Drug Act is one of them.
To understand why this is going to have such a big impact on the stock, first a bit of a business history lesson:
There are two types of ways to make money in business -
Let’s take Apple vs. Microsoft.
Microsoft takes this wide strategy, selling, say, software to a huge market for a cheap price.
Then you look at Apple - more of a niche strategy.
In the Microsoft strategy where you capture the mass market you tend to have lower prices.
In the Apple strategy you capture a niche of the market and charge higher prices - the “specialization” strategy…
The iPhone vs. the Android.
The iPhone, believe it or not, has 30% of the market, but they’re able to charge higher prices for what’s considered to be a premium product…
Android is more mass market with lower prices (the same thing with Microsoft Windows that we all know and love and remember growing up).
Those are the two strategies, and it’s very similar with this orphan drug opportunity…
Orphan drugs have a smaller market, higher prices.
And the act President Trump pushed through with his Big Beautiful Bill gives these treatments 3 major advantages:
- The law exempts orphan drugs from Medicare drug price negotiations.
- It extends the protection period, so the drug has more runway to sell without competition.
- It promotes follow-up research for new uses - so one orphan drug approval could lead to multiple revenue streams.
What we’re seeing here is that any company that makes rare disease/orphan drugs, is seeing a higher return possibility for their investments.
That makes a big difference for investors…
These companies had been hammered because the return side for their investments had been capped, before Trump’s new act.
That kept the “investment” side capped, too - money wasn’t running into them.
But now we see that the “return” side is so much better, we are starting to see smart investors come into these stocks.
To give you an idea of the types of diseases we’re talking about…
Genetic or inherited disorders, cystic fibrosis, Tay Sachs, muscular dystrophy, autoimmune diseases including lupus…
Some cancers - sarcomas, glioblastomas, certain leukemias and rare solid tumors.
Infectious diseases - Hantavirus, certain fungal or topical infections…
Metabolic or degenerative disorders, ALS, Wilson’s Disease, mitochondrial disorders.
What’s super interesting is AI’s growing role in these rare diseases.
80% of rare diseases have a genetic origin.
Now, AI is actually helping us understand and combat those diseases a lot faster than ever before...
Which is why we’re seeing money FLOOD back into the biotech sector…
This is why we’re putting on this webinar tomorrow.
RSVP here and we’ll send you a private link to join.
Because there are some rare disease companies that are really starting to benefit that are in our biotech portfolio…
And three stocks in particular I’m dying to tell you about.
We’re going to actually break all this down for you on tomorrow’s webinar.
The urgency here is real, though - because an event happening before the end of this month will add jet fuel to the biotech fervor I see just starting to build.
I look forward to having you there.
Click here to get a private invitation to join. (It’s free.)
Have a wonderful Wednesday. I’ll see you tomorrow.
“The Buck Stops Here,”
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Written by Dylan Jovine