Overlooked and Undervalued: Biotech’s Imminent Bull Run

Joey Bose
June 8, 2022

Investing is not easy. Generating consistent returns that beat the market (e.g., S&P 500) is a lofty goal even for professional asset managers, but we can greatly increase our odds of making profitable investments by identifying market sectors that are entering bull market trends. These trends revolve around the sudden emergence of disruptive technologies (the internet, smartphones, etc.) or major demographic shifts (aging baby boomers, Chinese moving from the countryside to cities, work from home etc.). Once we have identified the big picture ‘macro’ trends, the next challenge is in identifying specific, under-the-radar investment opportunities that are on the verge of gaining a much wider investor following in a sector that is undervalued.

Biotechnology is the next sector that is poised for a bull run. Here’s why…

A massive inflow of capital during the height of the pandemic has left biotech companies flush with cash, and in order to substantiate their valuations, they must spend it in a productive fashion. Investors in public biotechs are waiting for the capital to be converted into material advancements (e.g. drug approvals) before re-investing in the sector. This hesitancy has resulted in a sector-wide sell-off and vast undervaluation of strong, productive R&D companies that have actually made significant advancements to their drug development programs. This might be the most opportune time to become a new biotech investor and own companies with massive growth potential. This phenomenon has little to do with company fundamentals, and everything to do with timing.

Simply put, we are in the Golden Age of Biotech, and opportunities abound.

Advancement in biotechnology research and development is colliding with a 1 billion person aging population and the demand for longer, higher quality lifespans. There will always be a need for advancements in healthcare technology. We’re still in the early stages of this era, but some past examples can give us a small taste of what’s coming:

  • Celgene stock has risen more than 30,000% since 1999
  • Immunomedics stock grew nearly 9,000% since 2009
  • Moderna shares rose more than 4,000% in 18 months

Biotech growth stories all feature a combination of successful product development, well-timed acquisitions, and world events. And investors who can recognize them early could hold the key to the next 100 years. All it takes to change your life is one well-timed investment to begin generational wealth formation.

Over the coming days you will receive more information on Cytonics Corporation, the next disruptive early-stage biotech opportunity in the regenerative medicine sector. Cytonics is a privately held biotech developing novel biologic therapies for osteoarthritis, a debilitating disease that results in cartilage degradation and intense joint pain and inflammation. To date, there are no effective therapies that actually treat the root molecular cause of the disease, and over $240B is spent globally on painkillers and anti-inflammatories that merely mask symptoms.

Cytonics’ lead drug candidate, CYT-108, is a genetically engineered protein variant of a naturally occurring enzyme that has been proven to reverse the progression of osteoarthritis and restore joint health. The company is gearing up for a Phase 1 human clinical trial in early Q1 2023. Having raised over $20M in private financing to-date with the support of Johnson and Johnson (a 14% stakeholder in the company), this is a time sensitive opportunity that likely won’t stay at its current undervaluation for long…

Download the Investor Brief
see slides 16 and 17 for preclinical study results