IBI Notable Community Discussion: The Best Is Yet To Come

Summary

Bioscience stocks commenced the week on a rally with the momentum building stronger toward the weekend. Nektar, Portola, Sesen, and especially Regenxbio are trading northbound.

Packing heavy punches, Sesen Bio is knocking market bears toward an approval. Due to the robust VISTA outcomes, Vicinium will ultimately replace Valstar as the standard of care.

In readying for an upcoming approval of NKTR-181, Nektar formed the new subsidiary Inheris. It'll ensure a robust launch for NKTR-181, the silver bullet for the prescription opioid abuse epidemic.

Special thanks of all Integrated BioSci Investing members who participated in our daily discussion. I'm grateful for your intellectual generosity.

In honoring our troops who sacrificed their lives for our freedom, I'm offering a time-limited 50% discounts to new members. Message me if you wish to get your Memorial Day weekend gift.

You only have to do very few things right in your life so long as you don't do too many things wrong. - Warren Buffett

For the Memorial Day weekend, I'll feature another Integrated BioSci Investing Notable Community Discussion ("NCD"). This series is born out of my quest to continually improve the service for our community. As follow, an NCD fills in the gap for members who are unable to join the daily chat due to work and other obligations. As such, present pertinent highlights that we discussed during the week.

On Tuesday, May 21st, Flamman initiated an excellent discussion. As the market traded lower, the opportunistic investor Flamman - at least that's how I viewed him - prudently picked up shares in some key companies. Some of his purchases included the red hot Sesen Bio (SESN), Nektar Therapeutics(NKTR), and Omeros Corporation (OMER). Of note, I recently published updates on both Sesen and Nektar. You should definitely check out those research if you haven't done so. My trading analytics suggest that the momentum is building in Sesen, Nektar, Omer, and Regenxbio. These stocks have been trading on an uptrend earlier in the week.

Figure 1: Notable IBI stocks (Source: Yahoo Finance)

IBI Industry Trends: Important Ramifications From The Amazon Acquisition Of PillPack

Summary

Due to the PillPack acquisition, Amazon will reduce the service demand for traditional brick-and-mortal retail pharmacy.

There is an industry shift favoring mail-order prescription and online pharmacy. Ultimately, it's changing the landscapes for traditional operators like Walgreens and CVS Health.

Under Amazon's gargantuan infrastructure and improved logistics, PillPack will enjoy aggressive business growth. Moreover, it'll launch Amazon's online pharmacy as the initial step for more market domination.

In conveniently offering various medicines in a package, PillPack reduces the complexity of taking drug combination and thereby improves patient convenience.

The theme of investing in logistics providers to capitalize on the growth of another related industry is quite intriguing. This strategy leads to highly profitable returns.

The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective. - Warren Buffett

In supplementing my daily research, I periodically feature other articles in various series for members of Integrated BioSci Investing. My goal is to provide members with additional coverage to synergize my usual in-depth research. In the past, I experimented with the excessive emphasis on series articles. And, I learned that it reduced the quality of Integrated BioSci Investing's usual research. With more wisdom, I'll ensure that these brief analysis solely serve to "enhance" rather than "replace" my core value to our private investment community. Through my work, I seek to empower you in making prudent investment decisions and becoming better investors.

Figure 1: Amazon chart (Source: StockCharts)

Though I focus on therapeutic innovation, it's also important for me to assess related business (i.e. retail pharmacy). After all, how innovated drugs are utilized down the vertical chain influences the profitability of bioscience stocks. That being said, I'm intrigued by the recent Amazon (AMZN) acquisition of PillPack. The aforementioned merger and acquisition (M&A) came to my awareness through IBI community discussion.

A notable IBI member shared with the community an article from Christina Farr of CNBC. In my opinion, Farr did a fine coverage of the inside story regarding the Amazon acquisition of PillPack. Instead of solely reading the news, I believe that it's important for you to analyze the information and place them within their appropriate context. In my learning process, I created a "mental framework of data" to make more accurate investment decisions.

My biological analysis machinery is upgraded every time I read up on news and trial results. Consequently, it continually fine-tunes my analytical forecast of clinical trial results and regulatory approvals. And, I want to teach you how to conduct your own analysis rather than simply listening to my recommendation. It's much rewarding to instruct a man how to fish rather than providing him the fish alone.

IBI Announcement: Raising Support For An Innovative Fund

Summary

IBI is raising donation to launch an innovation fund via GoFundMe.

The fund will invests in bioscience companies to assist innovators in delivering lifesaving medicines to patients.

Your contribution even if small will be instrumental to the fund's success.

Someone is sitting in the shade today because someone else planted a tree long ago - Warren Buffett

As my readers and friends, you most likely know that my dream is to launch a life science hedge fund. The fund's objective is to invest in stellar public and private bioscience companies. That way, I can assist innovators in bringing lifesaving medicines to patients who can be you and your loved ones. As I recently lost my father-in-law to cancer, I'm fully cognizant of the need for lifesaving drugs.

Market Outlook: Strategies To Conquer A Bear Market

Summary

A bear market can be your worst enemy or your best friend.

There are three approaches that you can employ to potentially capture enormous profit in this down market.

Which strategies you should take is strongly dependent on your own financial situation and temperament.

For indeed, the investor’s chief problem – and even his worst enemy – is likely to be himself. - Benjamin Graham

Most investors are highly enthusiastic when their stocks appreciate: nearly all investors can relate to that “warm feeling” when their portfolio lit up green during a bull market. Nevertheless, one has to conquer the bears in the middle a downturn in order to capture the profits of the subsequent bull market. In the thick of the recent downturn, the highly powerful human emotion that is fear exerts its detrimental effects. As investors do not easily forget the pain associated with blood spilling on Wall Street, fear usually induces investors to make impulsive decisions. That being said, we’d like to introduce the new Market Outlook series to help you navigate this time of uncertainty and high volatility.

As shown in Figure 1, all major market indices - NASDAQ Biotechnology Index (NASDAQ:NBI), SPDR S&P Biotech (NYSE:XBI), and Dow Jones Industrial Average (NYSE:DJI) - are trading on a downtrend. Back in 2018, we forecasted that the bear market will grow stronger in 2019. Interestingly, the bears came out of the woodwork after a brief rally in January this year. Except for a few trend breakers, most of the bioscience equities gave up a significant percentage of their recent gains. In our view, it’s quite likely that an overall negative sentiment has recently seized the market.

Figure 1: Macromarket analytics (Source: Yahoo finance)