Saturday, April 4, 2015
The Weekend Edition is pulled from the daily Stansberry Digest. The Digest comes free with a subscription to any of our premium products.
The White House is now trying to tackle one of the largest health scares in America...
Last month, the White House released the most comprehensive plan ever to fight drug-resistant bacteria (or "superbugs"). It's called the National Action Plan for Combating Antibiotic-Resistant Bacteria. And its goal is to reduce diseases caused by some of the most lethal superbugs by 50% to 60% before 2020.
"It is the boldest move against antibiotic resistance by any U.S. administration ever," Boston University law professor Kevin Outterson told the Wall Street Journal.
Why is the United States' highest office now focused on bacteria? According to the U.S. Centers for Disease Control and Prevention (CDC), superbugs are responsible for around 2 million illnesses a year in the U.S. More than 23,000 people die each year from drug-resistant bacteria.
The White House wants to double the government's investment in combating antibiotic resistance to $1.2 billion.
One of the largest goals for the program is to keep farmers from giving antibiotics to cows, chickens, and other animals to help them grow faster. Around 70% of antibiotics sold in the U.S. are used in livestock, according to Sujatha Jahagirdar, program director of consumer advocate U.S. Public Interest Research Group's Stop Antibiotics Overuse program. Humans then eat those animals and naturally build antibiotic resistance.
Restaurant chains like McDonald's and Chipotle are already working to reduce the use of meat from animals that have been given antibiotics. But the problem is only getting worse overseas, which we'll discuss in more detail shortly.
The government also wants hospitals to implement new programs to decrease the spread of infection – washing hands, washing surfaces and equipment, and decreasing the use of antibiotics in patients.
Doctors working with Medicare and Medicaid will be required to report their antibiotic prescriptions... especially when used to treat non-bacterial infections, like colds.
The CDC would also double the number of people it screens arriving in the U.S. from countries with high rates of multidrug-resistant tuberculosis. It expects to increase its screenings from 500,000 today to about 1 million within five years.
The report says the government hopes to put two new antibiotic drugs on the market as part of its efforts. As Jahagirdar told news service Reuters...
And remember, this is just to tackle the superbug problem in the U.S...
According to a recent study by Princeton University, antibiotic use in animals should rise 67% globally by 2030, when compared with a 2010 baseline. Meanwhile, antibiotic use in major emerging economies like China, India, Russia, and Brazil will likely double.
As emerging nations grow wealthier and urbanize, their diets change. They shift from eating more grains and vegetables to more protein (like chicken, beef, and eggs).
The study noted that the increased use of antibiotics could result in a common infection leading to death because people no longer respond to drugs.
The authors of the study – conducted by Princeton, the International Livestock Research Institute (ILRI), and the National Institutes of Health – are most concerned about antibiotic use in Asia.
Demand for livestock is soaring. But the government has little to no regulation governing antibiotic use in animals. The study estimates China's livestock population could soon be consuming one-third of the world's antibiotics. Reuters noted the "countries with the largest projected increases in antibiotics consumption" are Myanmar (205%), Nigeria (163%), Peru (160%), and Vietnam (157%).
"Superbugs" are one of the biggest threats to the human population today...
We asked Stansberry Venture editor Dave Lashmet for his thoughts on the White House superbug report and the flurry of takeover activity in health care. He isn't worried about livestock... Instead, he's focused on the president's desire to see at least two new antibiotics on the shelves. As he told us...
Venture subscribers already sold half their stake in one of the companies fighting superbugs for a 130% gain. But they're holding a half-position in the stock until a buyout occurs. More from Dave...
The only way for Big Pharma to set prices for these new drugs is to buy the small companies developing them. And Dave believes he has discovered the next tiny biotech in Big Pharma's crosshairs.
The company is working on a drug to fight superbugs. And it's scheduled to announce final Phase 3 clinical trials in the middle of the year... But it could announce any time now.
Dave has been tracking the company's trials and believes the testing is already finished. It's likely just compiling data now and waiting to tell the world if its new drug is a success.
If the drug is a success (as Dave suspects), he believes Big Pharma could buy the company in as little as 18 hours after the announcement.
That's how hungry Big Pharma is for promising new drugs today... especially drugs that combat something as serious as superbugs.
Before you get too excited, I need to warn you that this type of investing isn't right for everyone. There are risks involved in buying tiny, early stage companies like the ones Dave recommends in Venture. Lots of these firms go bust.
That's why Stansberry Venture is our most exclusive service. We only want a small number of people taking advantage of these recommendations. We want everyone to get in early... before the market catches on.
And while there are risks, there are also huge payoffs. Dave has only recommended five companies in Stansberry Venture. The ones that have been in the portfolio for more than seven weeks have led to impressive gains. Per Dave's request, I can't share the names. But his performance speaks for itself... Those three companies are up an average of 114%.
And he thinks the company he recommended last month could be the best performer to date... because there's no price tag too high for Big Pharma if this company's drug proves successful.
But time is of the essence. The company could announce results any day. And when it does, the company will be up for grabs... and shares could soar.
If you're interested in learning more about Stansberry Venture, Dave prepared a presentation talking about his strategy for finding early stage biotech winners. He also shares the details of this recommendation. You can watch the video here. Or click here to read through the presentation without sitting through a video.
Date Range:3/26/2015 to 4/2/2015
Date Range:3/26/2015 to 4/2/2015