Investing in biotech stocks can be a mixed bag.
Sometimes you can really win it big. Other times you’ll end up holding a fizzer. Why are there few in between?
It’s because of how the industry is set up.
To get any new drug to market, these companies need to spend millions, sometimes billions, on research and development.
Then, only after jumping multiple regulatory hurdles, more money is spent to mass produce the drug and get it out to market.
It’s incredibly cash intensive.
Its why so many biotech stocks are continuously raising money. They need a constant stream of cash to continue their research efforts.
If all turns to nought, they have to try the process all over again. Investors sell their shares, and the company treads water before they can raise more cash.
However if the company becomes a major success, with sales protected by patents, let’s just say you won’t need another winner for a while.
And I believe I’ve found the latter.
The missed opportunity
You wouldn’t think the lab cleaner had a hand in creating one of the world’s greatest medical leaps.
But in 1928, they did. After a summer away, Alexander Fleming arrived to a messy office. Nothing was clean.
In the sink were some dirty dishes and a petri dish smeared with staphylococcus bacteria.
Upon cleaning, Fleming decided to take a look at the petri dish. There was mould, as well as staphylococcus bacteria on this dish.
Fleming was surprised by what happened to the staph. It didn’t only stop growing. The mould was actually killing the bacteria.
It took Fleming a few weeks to grow enough of the mould and confirm his findings.
His conclusion turned out to be phenomenal. There was something in the mould that not only inhibited growth but also combated infectious diseases.
Thus, penicillin was born.
From The Australian Financial Review (AFR) yesterday:
‘There has arguably been no greater discovery in human history than that of penicillin by Scottish scientist Alexander Fleming in 1928. First deployed in 1942 to eradicate bacterial infections during the war, it not only proved its mettle but openedthe world’s eyes to a whole new field, today become known as biotechnology — or biotech.’
Today the antibacterial drugs market numbers in the billions.
Unfortunately, Fleming didn’t reap the financial rewards for his discovery. What he came up with was quickly used and sold by thousands.
At the time, Britain frowned upon patents for new medical discovers. They believed it to be unethical.
I would argue it’s far more unethical to steal what others have spent time and money creating, but I digress.
Thankfully today, we do have patents, which reward pioneers for incredible discovers.
And right now, I’m eyeing one stock that’s on the verge of the next great medical revolution.
A 2,422% potential gain up for grabs
There is a revolutionary drug in testing right now!
In fact, derivatives of this drug are already on the market. And what they can do is truly incredible. It cured little Kaitlyn Johnson of leukaemia when chemotherapy couldn’t do the job.
According to Dr. David Porter, it cures about 90% of patients with blood and bone cancer when they have nothing else to turn too.
And it could kick start research to end not just cancer, but all human disease.
I’m talking about a living drug.
It doesn’t attack the disease. It super charges your immune system.
How you ask?
Doctors take a patient’s own immunity, engineer it to target specific cancers and then pump them back into the patient.
The now engineered killer immune cells do whatever it takes to find and destroy the cancer.
It’s finally offering hope to those who thought they had none.
But it’s also an incredible opportunity that billion dollar pharma’s don’t want to miss out on. According to market research firm, ReportsnReports, this emerging medical field could grow at more than 40%.
It’s why global pharma’s are falling over themselves to develop their own living drug.
I believe I’ve found a company that could soon become a household name. They are pioneering research in this medical revolution and expect regulatory approval to be swift.
While Fleming missed a fortune on penicillin, you don’t have to miss out on this next medical marvel.
To read a more in-depth report about this opportunity, click here.
Editor, Money Morning