Top Reasons to Get Bullish on Biotech

Biotech stock offer some of the most explosive opportunities.

That is, if you spot the right ones.

For example, some the hottest ideas can be found in weight loss drugs, cancer treatments known as ADCs (antibody-drug conjugates), and in gene-editing.

Look at CRISPR Therapeutics (SYM: CRSP), for example. Not long ago, it received US FDA approval for its gene-editing therapy for sickle cell disease and transfusion-dependent beta-thalassemia, a genetic disorder that prevents the production of hemoglobin in the blood and requires regular blood transfusions.

With that news, we watched CRISPR jump from about $40 to $70.

Or, look at Eli Lilly (SYM: LLY). Thanks to strong demand for obesity medication, the stock exploded. Novo Nordisk, Viking Therapeutics, and Structure Therapeutics also pushed higher. Even better, all could push even higher on growing demand for obesity medications. Helping, Goldman Sachs just said the obesity treatment market could be a $130 billion opportunity.

What makes biotech even hotter is that major drug companies are on a shopping spree.

Over the next few years, drug giants could lose billions to patent expirations. According to EY analysts, the top 20 giants could lose about $180 billion in sales by the end of the decade. To stop some of the potential bloodshed, companies are building up their pipelines, bring in fresh new drugs with multi-billion-dollar potential. For example, most recently, Johnson & Johnson said it would acquire Ambrx Biopharma for $2 billion. Pfizer acquired Seagen for $43 billion.

Of course, there are many more reasons to get bullish. But you get the point.

Why is it timing so important in investing?

I talked with Dylan Jovine recently and he put out a special report on this very topic suggesting that early investors in Amgen earned as much as 46,751% returns.

And he said they believe early investors in this biotech have the potential to do the same.

Their patented CRISPR technology has the potential to edit DNA – “cutting” the harmful genes and “pasting” the healthy ones.

It’s been called a “once-in-a-generation” opportunity.

And as a dominant player, this firm controls the CRISPR patent other companies must license.

Their market potential is enormous.

Is this tiny company the next Amgen?