Biotech Insider Alert
Investing in biotech and pharmaceutical innovation holds a special kind of satisfaction.
Not only do you get to be a part of finding the cure for devastating diseases and helping people live longer, more enjoyable lives, but you're tapped into the most explosive profits on Earth.
Breaking news can send a biotech stock blasting higher in days, sometimes overnight.
Big-name biotech investors get this. Folks like Patrick Shiong Soon, who sits at number 145 on the Forbes Billionaires List, or Randal Kirk, who recently made $1.5 billion off a single biotech company – nearly $700 million of it in a single day.
But it can be just as life-changing for individual investors.
There's no shortage of opportunity, either, with 1,300 companies in the U.S. alone forging new ground in drug discovery and technology, and hundreds of drugs in the approval pipeline right now.
The trick is knowing which ones deserve your investment dollars.
Just because a company develops a new drug… doesn't mean the drug will work. In fact, chances are, it won't.
Out of every 5,000 new drugs, the FDA will ultimately approve only one.
That's why Ernie Tremblay's Biotech Insider Alert has gotten so much attention in the last couple of years.
In fact, Ernie was recently singled out as the “most winning” stock picker in 2014. Not just in biotech, but in the entire investment newsletter industry. At the time of the announcement, about 60 stocks had returned gains of 100% or better during 2014. Four of those 60 stocks were Ernie's picks.
Now, 2014 wasn't a particularly good year for the biotech sector.
But with expertise like this, market conditions don't matter.
THREE SIMPLE STEPS THAT FIND WINNERS
Ernie is actually a researcher/writer who spent decades immersed in the medical science field. That's how he has come to understand the FDA approval process better than almost anyone.
He distilled everything he learned into a powerful three-phase formula to determine whether a new drug will be a breakthrough winner – or just another casualty of an FDA denial.
Here's the process, with Ernie's comments:
Please note: Ernie has made his formula public. But he cautions investors not to try to use it on their own without guidance. It's only effective with the overlay of his experience, contacts, and rigorous due diligence – as well as investment expertise and a strict risk management discipline.
Phase 1: The Science Must Work
“When I isolate a new drug, I put it through an extensive evaluation process that leaves no stone unturned. I personally dive into available pre-clinical and clinical data, evaluate the statistical significance indicators for the data, and take a rigorous look at the drug's side effects, how it is metabolized, and how it works. If a question comes up, I may call on one of the many scientific gurus I've met or interviewed over the last 25 years.”
Phase 2: The Market Must Be Hungry
“Even if a drug works, that doesn't mean it will be an investment success. It must also serve a market that is ready, willing, and able to embrace it. In other words, the drug has to be able to sell. And sell big time. So I evaluate the potential market for each and every drug I recommend.”
Phase 3: Timing Is Everything
“This is where a lot of investors get into trouble. They hear an exciting story about a new drug and jump right in. Here's the thing: If the drug is still in the early stages of development, it could be years before the stock moves. Plus, in the early stages, it's impossible to know if the drug actually works. The key is to get in AFTER the science has proven to work… but BEFORE the FDA approval sends the stock into orbit.”
Clearly, getting that timing right is key. It can mean the difference between a nice 50% return… and a gain that's absolutely life-changing.
So Ernie developed a calendar to track the upcoming dates, to take the guesswork out of wondering when (and if) those gains will come.
Here's an example – one that made his readers a ton of money.
HIS CALENDAR PREDICTED A $17 TO $101 MOVE
In late 2012, Ernie was tracking a meeting scheduled for October – something called an Advisory Committee (AdCom) meeting – where medical experts get together and make an unofficial recommendation as to the drug's effectiveness and safety.
They were looking at a new drug, lomitapide, that wasn't getting a lot of media attention.
But Ernie knew about it because, a few years back, he had interviewed the drug's lead researcher – a University of Pennsylvania MD named Dan Rader. They were developing it to treat HoFH, a rare, hereditary cholesterol problem that causes premature death and terribly disfigures people afflicted with it… especially kids.
It was Dr. Rader who “rescued” lomitapide from a Bristol Meyers project that was abandoned in the 1990s because it caused stomach problems in early test patients. But he and his development team figured out a way to eliminate the gastrointestinal problems, and started testing it in new clinical studies.
The results were fantastic. Cholesterol levels dropped substantially with no unmanageable side effects. Patients were living longer.
Having seen the data and researched the findings, Ernie knew chances were very good the AdCom panel would vote in favor of passing the drug – which would be huge for the small biotech called Aegerion (AEGR) developing it.
So he sent this email to Money Map Press publisher Mike Ward:
He made an official “buy” recommendation to a group of subscribers. In October 2012, when the stock was $17/share, he told them:
“[I] put the potential share price of this company at just shy of $72 per share. Based on the current share price – that represents a potential first-year gain of over 360%.”
Within weeks, lomitapide received a very favorable AdCom recommendation, just as Ernie said it would.
Look at what happened to the stock:
It rocketed from right around $17 a share – up to and past his target price of $72… all the way to a 52-week high of $101 a share.
Ernie's readers took profits four times, finally scaling out of the position. In the end, they made 103.38%… 248.00%… 307.22%… and 345.42%.
Now, some folks would have hung on for more gains.
But based on his experience and discipline, Ernie advised them to “cash out” in October 2013.
Good thing, too. After the excitement wore off, the stock started to retreat and fell all the way back down to $20/share.
That's part of what makes Biotech Insider Alert so powerful.
WEEKLY RECOMMENDATIONS FROM A TRUE "INSIDER"
Every week, Ernie guides his readers through the intricate niche world of biotech.
The odd vocabulary… the science… the approval process… ongoing analysis of the drug's potential – and how a success could impact a stock.
He gives specific advice on when to buy, how to protect yourself, and perhaps most importantly, when to take profits. All before most investors even know these opportunities exist.
This kind of ongoing guidance helps members get the most out of these trades, while minimizing the risk.
In just over one month we've already made $2,925. We are grateful for you and your amazing work at translating the confounding world of biotech.
~ C. Horace
It also helps deal with the unexpected.
Sometimes, as with AEGR, these calendar catalysts come the exact day Ernie predicts.
Once in a while, they get delayed. The FDA is a government agency, after all, and trials sometimes need more time to test or verify results. At that point, Ernie steps in with new instructions. You need to know what to do.
Sometimes, too, they even come early.
Like with Aerie Pharmaceuticals (AERI).
Ernie slapped a “buy” on AERI at $15.67 on May 30, 2014, in anticipation of a calendar date on June 30th – a release date for Phase 2b trial results for an experimental glaucoma drug.
But the announcement came four days early, and it was hugely positive. The stock popped to $26.98.
Members who followed his instructions were thrilled.
A profit of $5,440, a gain of 67.36%. Not a bad result for 26 days! And I never would have made this kind of investment without your service.
~ John Glick
Ernie monitors the portfolio constantly and keeps in touch. He's averaged 10 alerts per month to his Biotech Insider readers. That's better than two per week. And he's been known to send as many as 15 alerts in a given month, when they're needed.
It's all in pursuit of profits.
THE BIOTECH INSIDER ALERT PORTFOLIO
Ernie only recommends biotech and pharmaceutical stocks, typically in the small- and mid-cap range. A market cap of $250 million to $2.5 billion is what he calls the “sweet spot” for growth.
This strict focus culls out a lot of possible investments.
And it provides three big advantages.
One, lower market-cap stocks are more responsive to catalysts, like FDA approval or a positive trial outcome, so they can really see a pop in share price. Two, little players like this have “buyout” potential – another way to make easy overnight gains. Three, there's sufficient liquidity, so you can get in and out when you want.
His trading strategy is as simple as it gets.
You buy and hold. When it's time to take profits, you sell.
There's no options or shorting or complicated trades.
In fact, Ernie flatly refuses to recommend options trades on biotech stocks. It's too risky. And you don't need to leverage up to make huge gains. Not in the fast-paced biotech sector.
Like anything where the potential reward is this extraordinary, there is some risk involved.
So with every recommendation he gives, Ernie also explains what kind of stop-loss mechanism you should have in place. He'll specify a recommended portion of your capital to apply to the position, or he'll ease you into a position with a split entry.
It's already paid off for his members.
Buying Biotech Insider Alert has been worth every penny and the best investment I have ever made. I am up $10K in a little over one month.
~ Annah R.
I made close to 30k profit out of an investment of 50k USD… at a time where I needed some additional investment. Thank you VERY much – you are the best advisor. I became a lifetime customer.
~ Terence Yardley