Tweet of the Week: Drugmakers Can't Get a Second Drug Approved

Drugmakers like GlaxoSmithKline and Celgene keep snatching them up before they can get a second drug approved. Will it happen to Medivation?

Apr 27, 2014 at 2:00PM

This week's tweet of the week comes from Frank David, who points out a fact he learned in an article by Matthew Herper: Over half of companies that got a drug approved by the FDA from 1950 to 2011 did so only once.

In the following video, senior biotech specialist Brian Orelli and health-care bureau chief Max Macaluso discuss the implications. While it could mean that biotechs have trouble getting a second drug approved, it's likely that many of them got acquired before they had the chance. GlaxoSmithKline (NYSE:GSK), for instance, bought its partner Human Genome Sciences after it got its lupus drug approved. And Celgene (NASDAQ:CELG) bought Abraxis for its cancer drug Abraxane before the biotech could use its platform to get additional drugs approved.

Looking at the current crop of one-drug wonders, Medivation (NASDAQ:MDVN) is an attractive company whether it continues alone or gets acquired by its partner Astellas Pharma. Watch the following video for more of Brian's and Max's thoughts on Medivation.

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Brian Orelli has no position in any stocks mentioned. Max Macaluso, Ph.D., owns shares of Celgene. The Motley Fool recommends Celgene. Try any of our Foolish newsletter services free for 30 days. 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.

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.

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