Ever since Kathleen Casey Kirschling became the first Baby Boomer to retire on October 15, 2007, biotech stocks have become one of the hottest investment sectors.
That’s because behind her were another 80 million Boomers planning to retire at the rate of 10,000 per day over the next twenty years.
Thanks in part to that aging population, the iShares NASDAQ Biotech Index ETF (NASDAQ:IBB) ran from $80 to $400 in recent years. But it’s not just the Boomers fueling the sector rally.
New innovations, increasing demand, and the potential for mergers and acquisitions (M&A) is playing a big part, too. In fact, just this year, Celgene agreed to acquire Impact Biomedicines in a deal worth up to $7 billion. Takeda Pharmaceutical’s bought TiGenix for $630 million. Sanofi said it would buy Ablynx for $4.8 billion.
That follows $50 billion worth of M&A in 2017.
Better yet, we could see another $200 billion worth of deals this year, predicts consultancy firm, EY.
In short, the excitement in the sector is explosive, as it relates to stocks.
Look at Amicus Therapeutics (NASDAQ:FOLD), for example.
FOLD is a biotechnology company that engages in the discovery, development, and commercialization of medicines for various rare and orphan diseases. The company is developing topical therapy (SD-101) for the treatment of skin blistering and lesions associated with Epidermolysis Bullosa (NYSE:EB), a rare genetic disorder that affects one in 30,000 newborns.
It’s also involved with Fabry disease, a rare genetic disease a deficiency of the enzyme alpha-galactosidase A (a-Gal A) that causes a buildup of a type of fat called globotriaosylceramide (Gb3, or GL-3) in the body. The good news with this treatment is that the Canadian Drug Expert Committee recently recommended this treatment for long-term treatment of adults with confirmed diagnosis of Fabry disease and who have an amenable mutation.
Even more exciting is that the Fabry treatment is on course to achieve full-year 2018 revenue of $75 million to $85 million with 360 patients currently being treated.
When The Cheap Investor first recommended this stock in August 2013 at $2.36, the greater investment community largely ignored it. Nowadays, with exciting new developments in several areas of study, shares of Amicus Therapeutics hit a recent high of $17.40.
That means our subscribers are smiling all the way to the bank with a potential return of 637%. We will continue to search for good quality, low-priced biotech stocks, as they have been some of our biggest winners.
Stay tuned for more information from The Cheap Investor.