The biggest profits can be made not from investing in Big Pharma companies, but from smaller-cap stocks in the biotech sector. We’ve pinpointed two small biotech companies poised to break out: VBI Vaccines Inc (NASDAQ:VBIV) and InMed Pharmaceuticals Inc (SNX:IN).
VBI’s vaccines are unique because they harness a proprietary technology created by the company, called an enveloped virus-like particle (VLP). This allows efficient and effective delivery of the vaccine by mimicking the ways the viruses travel through the body’s systems.
VBI is currently developing two vaccines for diseases that have high demand for prevention: hepatitis B and the cytomegalovirus (similar to Zika).
But VBI isn’t just a shot in the dark, floating alone in the scary biotech space. There are some big names standing behind the small-cap ($111 million) company. Perceptive Advisors’ biotech-focused fun, the Perceptive Life Sciences Fund, which is led by CEO Joseph Edelman, has bought a sizeable stake, as has Arch Ventures, helmed by Robert Nelsen, and Opko Health Inc (NASDAQ:OPK), with CEO Dr. Phillip Frost.
These are biotech investors with impressive track records – from Edelman’s stunning 5,000% play on Sarepta Therapeutics Inc (NASDAQ:SRPT) to Nelson’s early bid on Juno Therapeutic (NASDAQ:JUNO), to Frost’s own IVAX, a vaccination company that he sold to Teva Pharmaceutical Industries (NYSE:TEVA) for more than $7 billion.
VBI’s CEO, Jeff Baxter, is also in a good place to lead his company to success. He has a long and impressive resume that includes stints at Glaxo, as well as at Unilever (LON:ULVR) and British American Tobacco (LON:BATS) .
With its impressive roster of financial backers, as well as a seasoned exec, VBI is the best small-cap play for investors looking to substantially profit from the growing vaccine market.
InMed is a mere penny stock – currently priced around 15 cents per share – but it packs a wallop. The company has created its own proprietary biosynthesis drug development platform that derives cannabinoids from plants in an unprecedentedly cost effective and efficient manner. This process can help the company develop treatments at a faster pace than any other medical marijuana treatment-maker.
InMed’s chief medical officer, Dr. Ado Muhammed, formerly served as associate medical director at mid-cap marijuana biotech GW Pharmaceuticals Plc (NASDAQ:GWPH) and is one of the few scientists who has had clinical experience with a cannabinoid-based drug that has already been approved by the FDA (Sativex, GM’s blockbuster MS treatment).
InMed is developing therapies for conditions such as epidermolysis bullosa (EB, a serious pediatric skin disease), as well as glaucoma. There’s the potential for as much as $1 billion for a successful EB drug – currently, there’s no therapy on the market.
That would give InMed and its investors some incredible profits, as well as making the stock ripe for the picking by any Big Pharma player.
The most exciting biotech gains are currently – and will continue to be – made in from marijuana-based treatments. As pot picks up in pharmaceutical popularity, prepare your portfolio for sky-high profits.