Immunotherapy Showing Potential Promise - Immunotherapy ETF

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

Immunotherapy has emerged as a new potential frontier in treating a variety of diseases. Immunotherapy has risen to national attention via being showcased on the front cover of Time magazine in 2016 (Figure 1). Now, immunotherapy has been thrust into the forefront as an emerging and exciting therapeutic area that has experienced massive growth in terms of potential pipeline candidates across all capitalization biotech companies. Immunotherapy ushers in a new class of potentially promising therapies by harnessing the body’s immune system to recognize and eradicate debilitating diseases, specifically cancer and chronic viral infections. This immunotherapy approach may inevitably result in a paradigm shift from traditional medical intervention. Immunotherapy possesses holistic attributes by harnessing the body’s immune system to contend with or in some cases prevent disease. In addition to the holistic aspects, immunotherapy has been shown to have a favorable side effect profile and best-in-class efficacy across many different disease states. These therapies may provide a powerful technology to contend with a host of diseases, and in a future state, may potentially serve as a preventative technology similar to a traditional vaccine. Immunotherapy has evolved into many different classifications with differing modalities over the past several years, which has given rise to a growing number mid and small-cap biotechnology companies with potential investment opportunities via an immunotherapy ETF. In late 2015,Loncar Cancer Immunotherapy launched the Loncar Cancer Immunotherapy ETF (NASDAQ:CNCR) and provided investors with an opportunity to invest in this unique cohort.

Time Magazine Immunotherapy Cover
Figure 1 - TIME magazine cover showcasing immunotherapy and its potential in treating disease

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Issue #13: Icahn's Bristol-Myers Stake, Biotech Cohort Rallies and Eli Lilly's CEO Speaks

INO Health & Biotech Stock Guide

Issue #13

BIOTECH, HEALTH & PHARMA NEWS

Ever since President Trump met with a group of pharmaceutical executives at the White House, the entire biotech cohort has witnessed a resurgence as of late. This meeting was perceived as a positive interaction between the nascent government and the industry on a whole. This coincides with a consortium of big pharma companies joining forces to address transparency on drug price increases. Allergan (AGN), J&J (JNJ), Novo Nordisk (NVO), Merck (MRK) and AbbVie (ABBV) have committed to limiting any annual drug pricing increases to less than 10%. J&J, AbbVie and Merck all published annual reports regarding its portfolio and the price increases they’ve implemented. This transparency coalition is a step in the right direction to appease the general public and governmental officials that have been very critical of drug price increases. To add icing on the cake, Amgen’s CEO stated “We look forward to working collaboratively with the new administration.” Pharmaceutical executives are being proactive to be part of the conversation and be present at the table when it comes to working with Trump and his hardline stance regarding jobs and drug prices. The collaborative approach will hopefully bode well for the industry as a healthy relationship is fostered perceived on Wall Street.

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Issue #12: Trump’s Love-Hate Relationship With Pharma, Amgen Promises Jobs and Sector Earnings Underway

INO Health & Biotech Stock Guide

Preview Issue #12 - March 20, 2017

BIOTECH, HEALTH & PHARMA NEWS

President Trump met with a group of pharmaceutical executives at the White House where he voiced his concerns over their pricing, stating that pricing “has been astronomical.” In the same meeting, President Trump said “You folks have done a very great job over the years,” and “but we have to get the prices down.” In a separate press conference, Trump said that big pharma was “getting away with murder”. Big pharma companies are joining forces as of late to address the price increases that the public and governmental officials have been demanding. Allergan (AGN), J&J (JNJ), Novo Nordisk (NVO) and AbbVie (ABBV) have committed to limiting any annual drug pricing increases to less than 10%. J&J went further stating that they will be publishing an annual report regarding its portfolio and the price increases they’ve implemented. AbbVie released data on its increases as well stating that Humira was increased by 8.4% with an only once annual increase moving forward. Merck (MRK) becomes the latest pharma to join this drug pricing transparency coalition. Merck raised list prices by an average of 9.6% with an average net price increase of 5.5%. This transparency is a step in the right direction to appease the general public and governmental officials.

President Donald Trump

Figure 1 - President Trump met with pharmaceutical industry leaders at the White House on Tuesday. From left are PhRMA President Stephen Ubl, Merck CEO Kenneth Frazier, Trump, Celgene CEO Robert Hugin and Amgen CEO Robert Bradway. (Evan Vucci / Associated Press)

WHAT'S NEXT

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Preview Issue #11: J&J $30B Acquisition, Humana/Aetna Blocked and Allergan Sued

INO Health & Biotech Stock Guide

Preview Issue #11 - February 28, 2017

BIOTECH, HEALTH & PHARMA NEWS

Johnson & Johnson and McKesson make a big splash in merger and acquisition activity, courts block Humana/Aetna merger and Allergan and Endo sued by FTC. The healthcare cohort has witnessed several key events in the face of a political backdrop that’s put the entire industry on edge. The overall healthcare umbrella has become sensitive to any tweet from President Trump as he vows to bring down drug prices. As he pursues his crusade against drug pricing, much of these threats may have already been priced-in as seen in many healthcare-related stocks (i.e. McKesson, CVS, ABBV and AGN) that have seen sharp and sustained sell-offs that coincide with the 2017 presidential campaign cycle.

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Preview Issue #10: Trump Fires Shot, Valeant Divesture and Generic EpiPen Launches

INO Health & Biotech Stock Guide

Preview Issue #10 - February 8, 2017

BIOTECH, HEALTH & PHARMA NEWS

Prior to his inauguration, president-elect Trump held a press conference and chimed in on his stance with regard to the pharmaceutical industry and more specifically drug pricing. Trump stated that drug companies are "getting away with murder" when speaking to the drug pricing issue that has taken center stage throughput the presidential campaign. These remarks immediately resulted in a broad sell-off across the entire biotech cohort. The iShares Nasdaq Biotechnology ETF (IBB) shed more than 2.5% or $7 per share as these comments were heard during the live broadcast. Although the political uncertainty has abated, Donald Trump has been able to single handily influence the movement of specific stocks (i.e. Lockheed Martin, Ford, Boeing, etc.) and sectors (i.e. automotive, biotechnology and healthcare). The overall healthcare umbrella has become volatile on the heels of any statement or tweet from Donald Trump and thus one can expect continued volatility until the crosshairs are directed elsewhere.

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