Why Smart Traders Bought the Hillary Clinton Biotech Stock Dip, and Which Stocks They Are Placing Their Bets On

WINDSOR, ON / ACCESSWIRE / August 24, 2015 / The Wealthy Biotech Trader (or "WBT"), an investment newsletter focused on showing everyday investors new opportunities in rapidly growing, little-known biotech, pharma, medical device and general healthcare stocks making news and subsequent market moves, would like to discuss recent market events stemming from remarks (tweets) made by Democratic Presidential nominee Hillary Clinton last Monday, September 21st, 2015 about price gouging in the pharmaceutical industry. 

Last week Turing Pharmaceutical’s CEO Martin Shkreli announced they would be skyrocketing the price of a newly acquired AIDS drug by over 5,000%-- needless to say the entire media complex, as well as Twittersphere, blew up with anger and Mr. Shkreli quickly became the most hated man in America (last week). People hate this guy be because he seemingly represents everything that is wrong with capitalism today: the type of capitalism that divides so many people. Hillary Clinton, in an attempt to cash in on the moment, basically tweeted that she didn’t agree with these types of practices, and would immediately put together a plan to make sure drugs are priced fairly in America. 

As a result, the iShares NASDAQ Biotech index (NASDAQ: IBB) took an immediate 5% nosedive and finished the week down almost 15%. These are great opportunities to buy dips and make serious money.

The Biotech index is in a strong bull market and has not broken its upward trend-line. The reason that this tweet from Mrs. Clinton is meaningless in the context of healthcare/ Pharma/ Biotech investing is follows:

- New drugs, treatments and therapies are being discovered at a faster rate now than ever before;

- These treatments are more groundbreaking than ever before in biotech (tests for Alzheimer’s, therapies to tune the body’s immune system to fight cancer on its own, brain implants for paralyzed people, stems cells for regenerative medicine, customized drugs for individual patients and the list goes on and on;

- The population of the most developed countries are aging, which requires more overall drugs and services;

- Paradoxically and counterintuitively, increased government regulation actually benefits big pharma;

- Hillary is not even the front-runner for the Democrats.

Here are a few hot biotech stocks popular on Wall Street which could be at a perfect entry point because of last week’s news and also have the potential to make a huge move to the upside as they have pending news about their drugs:

Propanc Health Group (OTC: PPCH). Propanc is a cancer (oncology) focused biotech developing pharmaceuticals for the treatment of colorectal and pancreatic cancer.

Propanc (OTC: PPCH) is a name we want readers to keep a close eye on as they are currently completing their pre-clinical animal studies (testing on animals before humans, as prescribed by the FDA’s process) which would then potentially be used to apply to the FDA to start human clinical trials through a new drug application (NDA). As the animal studies unfold, the Company should continually release the news- they have stated these studies could be completed by year-end which would allow us to assume that the important news regarding safety and efficacy could be coming in the coming weeks. From there, they plan to conduct meetings with several regulatory agencies including the FDA to present their preclinical data and discuss the formal GLP animal safety studies and early stage clinical development pathway as they seek to proceed their lead product into human trials next year. Interestingly, pharmaceutical stocks benefit most in the early stages of their drug’s development so the Company’s and stock should be watched closely in the coming days and weeks.

The Company is different from other drug companies in that they are developing a formulation where the compounds are already supplied commercially for other related industrial uses which allows the Company to move much quicker and for less R&D dollars than the traditional Biotech/ Drug Company. The Company’s lead compound, PRP, consists of two proenzymes which are actually found in the pancreas of both animals and humans, which also helps with the availability, speed and cost of development as it’s just simply naturally derived, isolated and purified biological agents.

It’s also important to point out that the two proenzymes were used by the Company’s Co-Founder and Chief Scientific Officer, Dr. Julian Kenyon, through his medical practice in the UK, for compassionate use, where proenzyme therapy was used to treat 46 terminally ill cancer patients and showed promising results, despite the fact that these patients were terminally ill, many with days to weeks to live, and also that it was supplied as a suppository (so patients could self-medicate at home), where less of the active drug is absorbed into the body and therefore less effective when compared to the way Propanc is administering their product, via injection. 

The Wealthy Biotech Trader feels that any positive efficacy (how well the drug actually works) news could significantly move the stock past the recent 52 week highs which would be over 350% higher than the current price of just $0.03. PPCH also has a $1.52 price target on it by the research group SeeThruEquity. 

Aerie Pharmaceuticals, Inc. (NASDAQ: AERI). AERI is a clinical-stage pharmaceutical company focused on the discovery, development and commercialization of first-in-class therapies for the treatment of patients with glaucoma and other diseases of the eye. We love anything age related in the world of healthcare, and glaucoma is a growing problem in our aging population. Blockbuster drugs that are fighting age related issues would be huge winners on the stock side. AERI’s stock is probably the most volatile stock on WBT’s radar, and as such should be viewed with caution. With regular $10 - $20 pops and drops this name could be played here as a potential long once the gap in the stock chart is filled at about $19.

Peregrine Pharmaceuticals, Inc. (NASDAQ: PPHM). PPHM is a biopharmaceutical company with a pipeline of novel drug candidates in clinical trials focused on the treatment of cancer. The company's lead immunotherapy candidate, bavituximab, is in Phase III development for the treatment of second-line non-small cell lung cancer (the "SUNRISE trial") along with several investigator-sponsored trials evaluating other treatment combinations and additional oncology indications. PPHM is a volatile name that is at its 52 week lows and may be a bottom bounce play. Back in 2012 this ticker shot up almost 1,000% in only 2 weeks, so the potential is there for a wild break-out. 

Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS). SNSS is a biopharmaceutical company focused on the development and commercialization of new oncology therapeutics for the potential treatment of solid and hematologic cancers. SNSS was recently mentioned in an article on www.TheStreet.com as a potential stock to play from the long side, as well as on www.TheLifeSciencesReport.com as a potentially good stock to get involved with. The company reported disappointing FDA news in July, but the news came with a silver lining when the European Union’s Regulatory staff encouraged the company to submit the drug there for approval as a sub-set of patients (patients over 60) did quite well in the failed US phase IIII trial. From a purely technical standpoint on the company’s chart, the stock may choose to fill the "open gap" up at $6 with any further positive news out of the EU. Traders might look to research this trading phenomenon called "stock chart gap filling" here: http://www.investopedia.com/university/charts/charts8.asp .

The Wealthy Biotech Trader is always researching new trade ideas which have the makings for large market moves. Traders are urged to follow our parent outlet, The Wealthy Venture Capitalist on social media (see below) to stay apprised. We are an anti-email media outlet, and as such will only be releasing our reports/ updates/ news through Text Message Alerts, Twitter and Facebook. 

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