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The 'Sharks' Are All-In on the Platinum Age of Health Care By Dr. David Eifrig, senior partner, Stansberry Research
The "sharks" were circling... Julia Cheek didn't get overwhelmed, however. She stood in front of all five of them – all of whom had earned their vicious reputations – and managed to keep her composure. Over the next few minutes, Cheek was bombarded with questions. She responded each time without hesitation. And even after four sharks rejected her – including renowned billionaire investor Mark Cuban – she wasn't fazed. One reporter later described her as "the epitome of poise and sophistication." Eventually, her calm nature paid off. She got the last shark to bite – entrepreneur Lori Greiner. It was 2017... And Cheek was on the hit TV show Shark Tank. She pitched her at-home health-testing company Everlywell to the five investors, hoping to secure financing. The deal she made with Greiner was for a $1 million line of credit at 8% interest. Greiner also received 5% equity of the business. Cheek's pitch for Everlywell was simple... Each year, millions of Americans avoid some type of lab testing because of high or unknown costs. They also don't want to make the trip to the doctor's office only to wait around for an hour in a room full of sick people. Everlywell offers a solution. With Everlywell's testing kits, you order a test online or go pick it up from your local drugstore. You then follow the testing instructions, send it back in the mail, and wait a few days for the results to come in. It's simple. No doctor visit required. And the whole time, you'll know exactly what you're going to pay. Cheek's appearance on Shark Tank was a game changer for Everlywell... The show has millions of viewers. So when Cheek's episode aired, the company instantly had access to a massive potential customer base. When Cheek pitched her company to the "sharks," it had $2.5 million in sales. By 2021, Everlywell was valued at $2.9 billion. The future is creating a huge space for self-directed, data-driven health care. And that's exactly what the big fish in the ocean are betting on...
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With Everlywell, Cheek and Greiner were latching onto a megatrend we've identified – the boom in the life-sciences industry. After Shark Tank, the investor dollars continued to roll in for Everlywell. Big-name investment firms like BlackRock, Lux Capital, and Goodwater Capital all handed over their checkbooks. Everlywell has raised about $250 million from outside investors. Silicon Valley is all-in on the life-sciences boom. "Life science" refers to companies related to the research side of medical care... pharmaceutical and biotech companies that develop new treatments, and the supply chain they rely on. The convergence of life sciences with Big Data and other technologies like artificial intelligence is finally coming into focus. Regulators are approving more drugs every day... as researchers create new treatments to help save lives. This story has ramped up over the past few years. The number of patents issued in the U.S. has more than doubled since 2008. This shows that the rate of scientific advancement is across the board, and many of these patents are in the health care space. Take a look... Spending has also skyrocketed over time. A record $70 billion of private and public capital – mostly venture capital and initial public offerings ("IPOs") – poured into the life-sciences industry in 2020. The previous record came in 2018 with total spending of $36 billion... So spending nearly doubled in that short window of time. In 2020, 71 biotech companies held IPOs of at least $50 million. That was nearly a double from 2018 and 2019, when there were 38 and 44 IPOs at that level, respectively. And last year, more than 100 biotechs went public... raising nearly $15 billion in funds. COVID-19 played a big role in this. With the success of the COVID-19 mRNA vaccine technology, many researchers and scientists have been encouraged by the advancement of technology to fight infectious diseases, cancers, and more. We've seen a slowdown in IPOs in 2022. Economic headwinds have gotten in the way – for now. But with the long-term trend in life sciences, we should see this as a buying opportunity... When early-stage companies in biotech are struggling, the outcome is simple – the sharks will eat. Bigger fish in the markets will be looking to scoop up all kinds of promising tech for a fraction of its value. For investors like ourselves, this is a rare and exciting time... It's a time when investors should get greedy. Money is going to keep rolling into life-sciences companies for a long time. This boom is in its early innings... So be ready for a potentially life-changing opportunity. Here's to our health, wealth, and a great retirement, Dr. David Eifrig
Editor's note: The $1 trillion "bioeconomy" is expected to grow 30-fold in the next 20 years. And as we stand on the brink of this megatrend, Doc is coming forward with the single biggest call of his 40-year career... You see, American health care is undergoing a transformation – one that Doc believes will mint millionaires. Investors could see quadruple-digit gains in the best opportunities... plus steady 20%-per-year growth in the lowest-risk stocks, even in a potential recession. This story is so important, we're sharing it with a special bonus from Doc. Get the details here. Further Reading "We always need health care – in good times and bad," Doc writes. It's an unstoppable long-term trend, no matter what's next for the economy. In fact, several key tailwinds are already taking us into the "Platinum Age of Health Care"... Get the full story here. "The value of biotech and health care merger and acquisition deals has shot up in recent years," Doc explains. The big fish are snapping up the little fish – and it's creating a chance to profit as the health care industry gets more efficient... Read more here. |
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