Download now: The Downfall of Cable, and the Rise of 5G!

How Trump Is Lighting a Fire Under Biotech

Written by Samuel Taube
Posted April 17, 2019

What if there was a simple policy change that could reduce prescription drug prices by 26% to 30%... while increasing drug company revenue?  

There is such a policy change, and the White House is aggressively pursuing it. In the process, it's lighting a fire under the biotech industry...

topline, biotech index

I know what you’re thinking: How could lower drug prices help drug makers?

The answer lies in the legalized corruption of our current pharmacy system.

Drug companies pay billions of dollars a year in “rebates” to pharmacy benefit managers (PBMs) — the shady firms that act as middlemen between manufacturers and pharmacies.

These “rebates” are presumably meant to reduce the prices patients pay for a given drug company’s products. But in reality, it doesn’t work that way. Rather than passing them on to the pharmacy — and therefore the consumer — PBMs often pocket these payments from drug manufacturers and continue charging patients full price.

The result is effectively a system of legalized bribery that drives up drug prices and creates arbitrary costs for the drug industry.

topline, bribery systemSource: Milliman.com

But now, the U.S. Department of Health and Human Services is cracking down on this corrupt PBM practice. It’s pushing a rule change with bipartisan support that would force these middlemen to pass any rebates or discounts from drug companies directly to the consumer.

The result should be lower drug prices for you and me and steadier revenue for biotech and pharmaceutical companies. It’s a win-win, and it could send stock prices in the already impressive biotech industry to new heights.

If you’re looking to get into the biotech industry (and you should be given the returns), now is the time to do it. Buying a biotech ETF is one way to do that...

But Wealth Daily contributor and Topline Trader founder Jason Stutman has a more profitable suggestion.

At his upcoming Topline Trader Summit, Jason will teach you about his evidence-based biotech investing system that picks out winning early-stage biotech stocks with incredible accuracy.

This system was built with the help of more than 250 doctors, bench scientists, and biotech executives, and it has already started racking up huge gains.

Check out this one-week gain of more than 50% on Scynexis, Inc. (NASDAQ: SCYX):

topline, gains

At tomorrow’s Topline Trader Summit, Jason will show you how he finds these winning biotech trades — for free.

This is the perfect opportunity to get a head start on your biotech investing career before the upcoming Trump biotech rally gets underway. Click here to sign up.  

Until next time,

Monica Savaglia

Samuel Taube

Samuel Taube brings years of experience researching ETFs, cryptocurrencies, muni bonds, value stocks, and more to Wealth Daily. He has been writing for investment newsletters since 2013 and has penned articles accurately predicting financial market reactions to Brexit, the election of Donald Trump, and more. Samuel holds a degree in economics from the University of Maryland, and his investment approach focuses on finding undervalued assets at every point in the business cycle and then reaping big returns when they recover. To learn more about Samuel, click here.

Buffett's Envy: 50% Annual Returns, Guaranteed