Buy the Hillary Dip

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A Little-Known Options Play Has Just Tripped the "R-4 Trigger" Which means that approximately two weeks from now, you'll have the chance to cash in for gains that could earn you $880 for every $1,000 you put in. Even better, you'll have the chance to do this about twice per month going forward.  Learn more here. Buy the Hillary Dip By Christian DeHaemer | Thursday, September 24th, 2015 Earlier this week, there was outrage on the Internet after it was announced that Turing Pharmaceuticals of New York would be hiking the price of Daraprim from $13.50 a pill to $750 a pill. Turing bought the drug from Impax Laboratories in August for $55 million and raised the price. Daraprim fights toxoplasmosis. The infection is particularly dangerous for people who have weakened immune systems, like AIDS patients, as well as for pregnant women. Twittergeddon After the Twitterstorm, the CEO of Turing, Martin Shkreli, changed his mind, saying: “Yes it is absolutely a reaction — there were mistakes made with respect to helping people understand why we took this action, I think that it makes sense to lower the price in response to the anger that was felt by people.” The price will be lowered to allow the company to break even or make a smaller profit. Shkreli's initial argument was that money raised from the price increase of Daraprim would go into research for a better drug with fewer side effects. I don't run a drug company, but the pure greed seems unjustifiable in this case, and the fact that it was quickly overturned by a public blowback seems like a win. Advertisement Have You Ever Seen This? I was in complete and utter shock when I learned just how valuable this sea creature is... A chemical given off by this rare sea sponge is so important to a new (possibly cancer-curing) medical breakthrough that its price is skyrocketing. Click here for the full story. Biotech Boom One thing I do know is that biotech is one of the things the United States does well. We are in the midst of a biotech boom. There is a new test for Alzheimer's that will lead to early treatments. There are brain implants for paralyzed people that move bionic arms and legs. Immunotherapy drugs are using people's own immune systems to fight cancer. There have been a flurry of breakthroughs in stem cells, which could lead to new treatments for everything from Lou Gehrig's disease to heart disorders. And perhaps the biggest biotech trend in is personalized medicine, with drugs and treatments tailored directly to a patient's genetic and biological makeup. Drug Profits All of these breakthroughs have one thing in common: the profit motive. Forbes put the cost of creating a new drug at $5 billion. Out of 10,000 drugs that start development, only 10 reach the market. The top five biotech companies spend about 15% of their profits on R&D every year. The only way these companies can innovate is to make money from those 10 drugs over the 20-year patent life. In 2014, drugs going off patent cost the major drug companies roughly $34 billion. Do I think Turing was greedy and trying to get rich? Sure. But I also know that if companies can't make money, there will be fewer new life-saving drugs.   There is no doubt that health care in this country is a mess. I don't, however, think that crony capitalism will solve it. That's Outrageous Hillary Clinton used the outrage to gin up new campaign contributions from the Big Pharma companies. Three days ago, Hillary Clinton, in reaction to the Turing price hike, put out a tweet that crushed biotech stocks: Price gouging like this in the specialty drug market is outrageous. Tomorrow I'll lay out a plan to take it on. -H In other words: Donate to my campaign if you know what's good for you. It should be noted that Clinton and Obama were the top recipients of donations from Big Pharma during the 2008 campaign. It should also be noted that Turing is small pharma — very small. Advertisement Nobel Prize winner warns of disaster A Nobel Prize-winning scientist issued a dire warning to the scientific community about an infectious disease that would kill millions. But Big Pharma neglected the warning, scrapping nearly all research and development for it. Now, each year, the disease is claiming more and more American lives, killing more people than HIV and AIDS — combined. The World Health Organization calls it "one of the three greatest threats to human health." And because Big Pharma dropped the ball on this threat, its lethal spread can now only be stopped by one small company's breakthrough "cure." Click here now for the full story. Action Alert At the time of this nefarious tweet, I put out an action alert in my service Options Trading Pit. I wrote: First of all, Hillary isn't even the front-runner for the Democrats. Secondly, price controls will never get through the enormous big pharma lobby.  Third, if it did happen, it would be two years from now at the earliest. Fourth, it would be called “Patient Protection Bill for the Little Guy, Average Worker and their Children.” And in the long history of naming bills for the opposite of what they do (think "Patriot Act"), it would screw the little guy, entrench the rent seekers, and send pharma stocks to the moon (think AIG after Obamacare). History suggests that government regulation will be the best thing that could happen to Big Pharma stocks. Here is the two-year chart for the biotech ETF (NASDAQ: IBB): It is up about 250% over the last five years. The uptrend remains, and until that changes, you should buy the dip. All the best, Christian DeHaemer @TheDailyHammer on Twitter Since 1995, Christian DeHaemer has specialized in frontier market opportunities. He has traveled extensively and invested in places as varied as Cuba, Mongolia, and Kenya. Chris believes the best way to make money is to get there first with the most. Christian is the founder of Crisis & Opportunity and Managing Director of Wealth Daily. He is also a contributor for Energy & Capital. For more on Christian, see his editor's page. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles The Rent is Too Damn High and Other Oddities Doom and Student Debt China, U.S. Technology Market Trades Recently... Bakken Oil Profits: Slow and Steady Banks a Gain Five Bland Predictions for Q4 2015 Will THIS Kill the Solar Industry? Doom and Student Debt Strange Things Afoot in the House of Saud

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