Here’s Why You Shouldn’t Be Hesitant on Biotech Stocks

Monica Savaglia

Posted April 9, 2019

You’re probably not hearing about the successes that are going on right now in health care.

Maybe health care stocks have never been your “thing” or you’ve heard that they tend to be risky and a lot of work to manage.

Whatever the reason you haven’t been following these stocks, I want to give you one example of the successes happening in health right now. It’s a success that I really think is worth your time. I have a feeling you’re going to be really impressed with the company and what it’s done so far this year. 

The company is called Vital Therapies, Inc. (NASDAQ: VTL). It is a biotherapeutic company that aims to develop cell-based therapies for the treatment of acute forms of liver failure. Severe alcoholic hepatitis (sAH) is a deadly liver disease that results from an increase in alcohol consumption, which increases the risk of liver failure and even death. An estimated 30,000 people in the U.S each year suffer from a form of sAH that’s associated with mortality and a hospital stay of up to three days.

There isn’t much to do when a patient develops liver failure. Therapies are limited and extremely pricey. Your liver has multiple vital functions, such as metabolic, regulatory, detoxification, and synthetic activities. If your liver is unable to perform its job, it could have fatal consequences.

And this is where Vital Therapies aims to step in. However, it was unable to do it with its platform alone and sought out a resolution to its problems in order to keep shareholders happy and the business afloat.

In the beginning of 2019, Vital Therapies has experienced some really amazing gains, enjoying an uptrend of 175.9% for a variety of reasons. A lot of those reasons deal with what’s going on with the company as a whole rather than the therapies it’s working on.

Early in the year, it announced that it has entered into an agreement with a private clinical-stage biotech company in Germany called Immunic AG. This agreement means the company will focus on advancing Immunic’s pipeline of treatments for chronic inflammatory and autoimmune diseases.

On April 5, Vital Therapies shareholders voted to approve proposals that will be required to complete the combination of the companies. Vital announced that it will change its name to Immunic and shares will trade on Nasdaq under the symbol “IMUX.” This decision and news about the future of both of these companies had shares of Vital up by 20% premarket.

The president and CEO of Vital Therapies had this to say:

We believe that this outcome represents the best option for our stockholders, as the transaction is expected to create a publicly listed company with a strong cash position and promising portfolio of multiple oral drug candidates with best-in-class potential for the treatment of highly-prevalent and debilitating autoimmune and inflammatory diseases…

Vital has already had a strong start to the year. The news about this finalization of the business combination with Immunic shows that the company has a strong future as well.

Could This Be What You’re Missing Out On?

Health care and biotech stocks shouldn’t be an investment approach that you’re hesitant on just because you don’t have the time and energy to stay updated on clinical trial news. These stocks have the opportunity to enrich your portfolio and your life. Why pass that by?

My colleague Samuel Taube recently went into detail about why you need health care stocks in a late-stage bull market. He does a great job of going into detail about health care stocks and how they outperform in “good” and “bad” times in the market.

There are plenty of reasons to invest in biotech companies like Vital Therapies. These companies do well under any type of market turmoil or upswing. Yes, you do have to pay attention and stay alert on what’s going on with the companies and their clinical trials. That’s not a surprise. But isn’t staying alert a part of investing as a whole?

What you have to do is ask yourself if it is worth it — are 175% gains in as little as four months worth it to you? By investing in companies like Vital Therapies, you give yourself the opportunity to invest in something that could actually pay off, instead of waiting years for something to maybe pay off.

Don’t Be Hesitant on Biotech Stocks. Instead, Invest with Confidence.

So we’ve pinpointed the one disadvantage of investing in biotech stocks: that it takes a lot of time to follow those companies and analyze what events and news will trigger share prices and send them soaring.

What if I were to tell you there’s a solution to that problem?

Well, for starters, I hope you’d take that opportunity seriously. This month, you have the chance to learn more about the biotech sector with access to a tool that will notify you of upcoming events and news that will trigger stock prices to soar.

On April 18 at 1 p.m. (ET)/10 a.m. (PT), you can take us up on this offer. Jason Stutman, Wealth Daily’s senior technology analyst and Topline Trader founder, has spent years analyzing some of the most robust sectors. In fact, for six years, he’s been developing a name for himself, putting together a strong contact list in the world of biotech that includes high-ranking CTOs and CEOs, as well as more than 250 leading doctors and scientists. He specifically focuses on small, development-stage biotechs that are poised for double- or even triple-digit swings because of certain catalyst events.

Jason didn’t want to keep those connections to himself, and he definitely didn’t want to deprive readers and investors of information on major catalyst events in the biotech sector, which is why he came up with a brilliant idea…

He decided the best way to share his experiences and connections was to broadcast a webinar. This webinar will focus on what I mentioned above, along with other useful insight into one of the hottest sectors on the market. I know you’ll walk away from this webinar with more confidence and ready to invest in biotech companies.

The opportunity to sign up is coming soon, so keep an eye out. And mark your calendar for April 18 at 1 p.m. (ET)/10 a.m. (PT).

I can’t stress it enough: This is a rare opportunity that doesn’t come around often, so take advantage of this free event. All you have to do is reserve your seat. Keep an eye on your inbox to find out how. Oh, and set a reminder on your phone so you don’t miss the event!

Until next time,

Monica Savaglia Signature Park Avenue Digest

Monica Savaglia

Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.

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