Dear Reader,
Biotech can be one of the most rewarding sectors in the market.
In fact, the list of 2024's best stocks is peppered with biotech names.
Like Viking Therapeutics, up 210% this year alone.
Or Arcutis Biotherapeutics, up 212% already in 2024.
Janux Therapeutics is up 210% so far this year.
But there's only one problem …
Unless you have a PhD …
Or an inside source …
Good luck picking biotech winners ahead of time.
The FDA approval process is extremely difficult.
It can cost billions of dollars …
And last more than a decade.
Even then, after multiple phases of trials, a drug can still be rejected.
In fact, 9 in 10 drugs never get approval from the FDA.
They die on the vine.
And even for the ones who survive, it can be hard to get any information on the status of a drug …
Or how close it is to approval.
The FDA is notoriously opaque.
But for a special set of drug companies, all of that has changed.
The FDA has started to quietly send out a signal.
This signal means specific companies will get an expedited route to approval …
And hands-on guidance from the FDA.
For investors, there's something even more important going on here …
Over 97% of the time the FDA sends out this signal …
The company involved has seen its stock spike sometime in the following months.
74 out of 76 times since 2016.
For an average gain of 117% in just eight months.
And it has nothing to do with approval or rejection.
Take Adaptimmune Therapeutics, for example.
Shares were hovering around one dollar when the FDA sent out this quiet signal on Adaptimmune's new tumor drug.
Within six months, the stock shot up 845%
It took almost four more years before the drug was approved.
Caladrius Biosciences' stock was going nowhere, stuck around $4 …
Then it got this FDA signal.
And shares jumped 119% — in two days.
The drug in question wasn't approved for another five years …
Ocugen received an FDA signal in December 2023.
Its share price spiked 435% in just five months.
The drug has yet to be given final approval.
It's a simple trade. The FDA sends out this signal.
And 97% of the time the company's stock price has gone up in the following months.
And whether the drug was eventually approved or not had no effect …
Now, I believe one drug company is on the verge of getting this FDA signal.
In fact, I think it could happen very soon …
That's why I just put together an important video with all the details on this incredible signal — and the stock market winners it's produced.
Sincerely,
Michael Robinson, Editor
Disruptors & Dominators
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