| You are receiving this email because you are subscribed to Behind the Markets. If you no longer wish to receive these emails, please unsubscribe here. Dear Reader, Happy Wednesday! Woo! We had a killer webinar yesterday. I hope you guys attended - I think we had record attendance or close to it, which is great. If you missed it, here’s the replay. Today I want to answer some of the webinar questions we got that we ran out of time to answer live. Here are some of the top ones:
Q: Are these two AI drug discovery companies you’re talking about, backed by Big Pharma - are they real? Readers want to know how far down the development pipeline these companies have gone. And that’s a good question. Readers want to know, are these little software companies with two kids working out of their mom’s basement? And that’s obviously a legit question. So, one of them, the one that’s backed by NVIDIA, has partnerships and deals with Bayer, Roche, Genentech, Merck, Sanofi - so, yes - it is real. And the one backed by Bill Gates has deals with Lilly, Takeda, Novartis, Bristol Myers Squibb and so on. These are way big deals. Q: Has an AI drug ever been approved? Another great question. In 2023, Japanese Big Pharma giant Takeda spent $2 billion buying a drug that was developed by one of these companies’ software. We’ve been following these companies for a while, and they are the real deal. These are the software platforms that Big Pharma has used. And it’s really interesting if you look at the evolution of the business model. In the beginning, it was more like these companies developed software and Big Pharma used it to assist them. And what happened is, they started to discover some of these molecules themselves, without Big Pharma. And started saying, “gosh, we should go bring these to phase two and phase three clinical trials with a partner so we can get the massive upside in this.” And that’s how these really became biotech companies. These software platforms really put the “tech” in biotech. It’s changing how this business is done. RFK Jr.’s mandate, the FDA mandate, is pushing the industry to more software. We’re watching this evolution happening and it’s really interesting. The one thing we know is that there’s a LOT of money involved, and it’s been a successful money maker so far. Q: Isn’t AI revolutionizing more than just drug discovery in the healthcare field? Another great question. And YES. It’s revolutionizing a lot. For example, testing for cancer. That’s a big deal. Grail, for example, just got approval to have the government pay for early cancer screening tests, which is a big deal. It’s also revolutionizing how patient populations are being managed for healthcare. As a matter of fact, the revolution is really so powerful that we added four bonus stocks to this report of testing companies and other things like that. Companies that are, again, putting the tech in biotech. So you’re going to get the two that are really poised to revolutionize drug discovery, but you’re also gonna get all the other stocks, the top stocks that are really killing it. And it’s these surprise bonus stocks we add that people really always love. We always want to try to overperform when it comes to these things. Here’s a link to the webinar and report access. I remember when we did the Trump’s Iron Dome report webinar a few months back, we added the European stocks building up defense as a surprise bonus and those stocks have just done gangbusters. We’ve heard so much from readers about those. Military stocks and biotech stocks are really my interests and these stocks are going to be great. What’s happening in biotech right now is truly a revolution, and we have a front-row seat here because biotech has been my interest for so long. It just so happens that the things I’ve always been interested in and had a knack for have suddenly gotten super popular. Q: Biotech and healthcare has been in the doldrums lately. Why is now the time to buy? Yes, healthcare stocks have underperformed the S&P this year by the largest margin in 25 years. The last time these stocks underperformed this badly was the first 10 years of my career. That’s partly because President Trump has been very aggressive since he got into the White House, and RFK Jr., as the head of Health and Human Services, which controls the FDA, has been very aggressive. They first want to knock out a lot of the bad things that happened during COVID - a lot of the groupthink that happened in the government. Stocks are often political. A lot of investors don’t really talk about it but they are political and with RFK and Trump a lot of investors have said, “biotech and healthcare is just too hard to figure out. We’re just going to sell till we get more clarity.” And investors have sold out of biotech. We’ve felt it in our portfolio. But now, we’re moving from the “destruction” phase of the Trump admin where they just knock out a lot of the groupthink stuff… And we’re moving to the “building” phase, where we get to see the offense RFK Jr. is putting on the field. So, this is also a kind of continuation of Trump’s “Operation Warp Speed” to get a Covid vaccine out his first term. We saw how fast a new drug came to market using a lot of these tools. And they want to institutionalize this, which is very smart. But look - here’s the thing - now we’re starting to see big money come back into biotech. And we’re now in a situation where we have a great revolution happening, being mandated, even. And yet, the bargains are still there in biotech. So we have cheap stock prices being met with huge “smart money” investment and a government mandate - it’s really a perfect storm for biotech investors. That said, I don’t day trade biotech - I try to keep things in perspective. We launched this service in March of 2018, and the average return on all closed trades over those seven years has been 48%. That’s on winners and losers, through good years and bad years. So this is a killer service - we have a good handle on what we’re doing here. Q: Should I buy all the stocks in the report, or do you have a favorite? Look, I can’t give anyone personalized investment advice. You have to do what’s in your best interest. Your accountant or financial advisor can help you with a personalized plan. But if I had $5,000 to invest, I’d personally spread that evenly over these stocks. That would be a great bet on the future of healthcare. Q: I noticed you’ve never done a Biotech Insider webinar before. Is your cancellation policy the same as with the other services? Yes, this is our first Biotech Insider webinar. We only started doing webinars again late last year. And we were waiting for the smoke to clear with the Trump administration. Now that we have clarity, and the direction biotech is going under RFK Jr. is crystal clear - now is the time. And YES - we have the same guarantee on all of our services: You get 30 days to test-drive. Try it out, if you don’t like it, you can get a 100% refund. Just call customer service. Our philosophy here is we don’t take hostages. We feel 30 days is a reasonable period of time to give somebody a chance. If you decide it’s not for you, that’s fine. We want to share this kind of cutting-edge research with mature, patient investors… Investors who understand that a 48% average return on all closed trades for seven years running, even through market crashes and a biotech winter, is something special. It’s an extraordinary service. It really is. So I just wanted to answer some of your questions today after yesterday’s webinar. Here’s that replay link. I hope you have a wonderful day, and I will speak to you tomorrow. | 