How to Trade the Bio-Boom

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I was once told that you couldn't make money from FDA, Phase III or other meaningful biotech decisions by an old publishing group I worked for.

Since leaving them behind, I've closed about 25 winners and only 4 losers since October 2012, including a five-day 250% gain on MAP Pharmaceuticals.

Those that can't think outside the box are doomed…


Here's what I'm watching now for biotech traders at Options Wealth Insiders.

NAVB and RPTP face FDA decisions at the tail end of April
2013.  By buying in early, we’re getting
in well ahead of any bull stampede. 

Here’s Navidea…

The company is seeking April 30 FDA approval on Lymphoseek
for use as diagnostic tracing agent in lymphatic mapping procedures. 

I’d
like to see NAVB trade close to $6 as the date in question draws near.

Initially,
the FDA delayed its decision, issuing a complete response letter because of
manufacturing questions of the diagnostic agent.  Right after this happened, the company
quickly resubmitted its application.

Lymphoseek
is a nuclear imaging agent that is used to determine the presence of metastatic
cancer in lymph nodes. If
approved, Lymphoseek will compete with Blue Dye and Sulfur colloid, which are
injected into patients, and circulated through lymph tissue to help identify
cancerous findings.  However, because of
“so-so” performance issues, Blue Dye and Sulfur Colloid both have to be used
together to get usable results.

Lymphoseek doesn’t
seem to have the same issue.  In fact,
according to a Seeking Alpha report:

“There are also several incentives for physicians and
institutions to utilize Lymphoseek. Because the drug is more quickly dispersed
once injected, Lymphoseek will save providers both time and money, as patients
and operating staff will not have to endure the current extended wait-time
prior to surgery.”

Here’s
Raptor (RPTP).

The
company is seeking April 30, 2013 FDA approval on RP103 for potential treatment
of nephropathic
cystinosis – an orphan disease that affects 2,000 patients worldwide.  It may be a small market, but the stock
should react favorably to any positive FDA news.

According
to reports, this drug has fewer side effects and an easier dosing schedule. As
we get closer to April 30, we expect RPTP to climb toward previous highs of
$6.20.

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