The Truth About Biotech IPOs in 2019

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From the Baltimore Clubhouse – It pays to follow the money.

And that’s what we’re going to do today… right to one of our favorite sectors for 2019.

You see, the ultra-wealthy are parking their money in this sector right now.

According to Institutional Investor, private equity firms are sitting on a record amount of cash – more than $1.14 trillion. Yet with the markets normalizing, these firms and their wealthy investors are suddenly showing a more adventurous attitude…

Multimillionaire investor club TIGER 21 says its members are allocating an average of 24% to private equity, mainly in real estate and healthcare companies. These include the risky biotech startups that have not yet received FDA approval.

I should note here that Members are often confused when it comes to investing in healthcare versus biotech. I don’t blame them… It can be confusing. And there is some overlap between the two.

According to healthcare and biotech expert Marc Lichtenfeld, “Biotech is the use of organisms or other biological processes to create drugs. Healthcare includes biotech but can be anything from medical devices to home health services.”

And the surge in investor interest in more speculative biotech stocks is evident in the sector’s year-to-date performance…

Biotech companies are up more than three times the S&P 500 this year.

Clearly, the momentum is with biotechs – both pre- and post-IPO.

But can you still make money in the public sector? Is it worth waiting until a biotech company goes public via an IPO to get in? And if so, how long after the company IPOs do you wait?

The answers come from this week’s Market Wake-Up Call.

Watch today’s video to hear Marc’s warning against investing in early-stage, smaller biotechs.

Instead of taking on all that risk, Marc encourages investors to focus on publicly traded biotech companies – the ones that are making a huge difference in improving lives – with the potential to help you earn big profits in 2019.

And Marc has a strategy that helps identify a trigger event – a catalyst that will propel the company’s share price, sometimes overnight. He has an outstanding track record of identifying that catalyst and getting Members in at the right time.

Case in point… One of the last times he was on the show, he had just gotten back from a trip in Israel with Members. During that interview, Marc talked about one of his favorite companies that he met with in Caesarea, Israel – Microbot Medical (Nasdaq: MBOT).

Here’s what Marc said about the company last month:

[Microbot Medical] makes exactly what the name sounds like: very, very tiny robots that go inside your body. Its lead product candidate is for hydrocephalus, which is also known as water on the brain. It’s when you have fluid accumulation in the brain. It’s a very serious condition often affecting babies.

To treat it, you put a shunt in the brain, which drains the fluid. The problem is that these shunts can get clogged, and when they do, you have to have surgery to remove it and put a new one in. Unfortunately, patients will typically have several surgeries in their lifetime to replace these shunts. And if you’re very unlucky, you could end up with dozens of surgeries in your lifetime.

Microbot’s product is a self-cleaning shunt, so you don’t have to have these repeat surgeries over and over in your lifetime if you suffer from this very serious condition. So this is really, really innovative and cool stuff.

At the time, shares of Microbot were trading for around $2.

Earlier this week, the company proved that its self-cleaning shunt works… in a preclinical study. Shares jumped to $19.40 (shares are currently at $8.55).

Clearly, Marc knows how to spot an opportunity…

And right now, Marc is so excited about the current potential in the biotech sector that he’s giving Members a FREE year of his biotech trading service Lightning Trend Trader. Here are all the details.

Enjoy your Sunday,

Julia