Biotech Tweet of the Week: Love Being Private

Investors often ignore private biotechs because they can't buy shares, but investors in companies such as InterMune and the obesity drug makers -- Arena Pharmaceuticals, VIVUS, and Orexigen -- need to follow their privately-held competitors.

Apr 14, 2014 at 4:54PM

This week's tweet of the week comes from Luke Timmerman, with a quote from Moderna Therapeutics' President and CEO Stephane Bancel, who says he loves being a private company because he has more control over what information gets released. Public companies are required to release information that's material to their stock price.

While it's easy to ignore this nuance since most investors can't invest in private companies, that's not a wise move. As Fool contributor Brian Orelli and health-care bureau chief Max Macaluso point out in the video below, private companies can have drugs that compete with the public companies you're invested in.

Privately held Boehringer Ingelheim, for instance, has an idiopathic pulmonary fibrosis drug that will compete with InterMune's (NASDAQ:ITMN) Esbriet if it's approved. Investors will have to wait for the full data at American Thoracic Society in May to see how much of a threat Boehringer Ingelheim's nintedanib will be to InterMune.

And the three public obesity drug makers Arena Pharmaceuticals (NASDAQ:ARNA), VIVUS (NASDAQ:VVUS), and Orexigen (NASDAQ:OREX) might be most focused on each other, but investors should keep an eye on Zafgen, which has a drug called beloranib in phase 2 trials. Zafgen is testing beloranib in patients with a severe form of genetic obesity called Prader-Willi syndrome, but if it works well there, it could be a competitor to Arena's Belviq, VIVUS' Qsymia, and Orexigen's Contrave.

Watch the video below for more information about the competition and how big pharma, such as Pfizer (NYSE:PFE), can use its large size to hold back data as well.

These three stocks are public
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multi-bagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Brian OrelliMax Macaluso and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information