InvestorPlace - Stock Market News, Stock Advice & Trading Tips
What if there was a “miracle drug” out there that could entirely eradicate mental illness?
I’m talking gut-wrenching and tough-to-treat diseases like depression, anxiety, bipolar disorder, eating disorders, substance abuse, and more.
Those illnesses are a serious problem. Nearly 1 billion suffer from a mental illness at any given time. That’s over 10% of the population.
They’re also economically costly illnesses. The global economic burden of all those mental health disorders is estimated at $2.5 trillion. That’s more than 10% the size of the U.S. economy.
It’s no wonder that the global treatment market for mental illness is marching toward $500 billion!
But… what if there were a miracle drug that could solve all those illnesses?
A drug that could help improve the lives of a billion people across the globe…
Save the global economy $2.5 trillion every single year…
Generate $500 billion in annual sales.
Well, in fact, such a miracle drug exists and is likely coming to a pharmacy near you very soon.
Biotech: Working to Eradicate Mental Illness
The drug’s efficacy has been verified by the biggest medical research institutions in the world.
Johns Hopkins has found that it can significantly help with smoking cessation and reducing alcohol dependence. Further, it can relieve anxiety and depression levels in people with life-threatening cancer diagnoses 4X better than traditional antidepressants on the market.
New York University also found that this drug causes a rapid and sustained reduction in anxiety and depression levels in cancer patients.
UC Davis discovered that this drug can produce beneficial behavioral effects in patients with mental health disorders. And Imperial College London found that it is better and faster at treating depression than Lexapro.
The drug works. And not just in labs – but in the real world, too.
It has already helped people quit smoking, beat alcoholism, and overcome depression. It has even helped some of our brave veterans triumph over PTSD.
The drug is, quite literally, a life-saver.
And it could be coming to a pharmacy near you very soon.
Clearing the Final Hurdle
One small biotech firm just started the first-ever Phase III clinical trial test of this drug compound.
It has proved both safe and effective in various previous trials. The evidence is compelling. It works wonders.
Now this miracle drug is on its final test.
If it passes, that could clear the way for it to hit pharmacy shelves within just a few years.
It could also clear the way for this tiny biotech firm to hit about $2 billion in annual sales by 2030.
And currently, this company’s enterprise value is just $250 million.
In other words:
- A tiny biotech firm has developed a miracle drug that could cure every mental illness on the planet.
- That drug has been shown to be safe and effective in various trials and is now on its final test.
- If the drug passes this final test, the company could scale revenues to 8X its current enterprise value before the end of the decade.
Does that sound like a setup for a potentially explosive stock return over the next few years?
It is. It is about as perfect of a setup as you could imagine for a biotech stock.
The Final Word on World-Changing Biotech
Most biotech stocks trade at 6X sales. If this stock gets that multiple on 2030 sales volume of $2 billion, we’re talking a potential $12 billion valuation – up 48X from current levels.
The best part?
It doesn’t matter if the economy goes boom or bust, if the stock market soars or crashes, if the Fed hikes rates or cuts them, or if inflation rises or falls.
No matter how those macroeconomic trends play out, consumers will still suffer through mental illnesses. Those illnesses will continue to take a significant economic toll, and folks will continue to pay for treatments to those diseases.
Nothing is 100% recession-proof. But this company looks pretty close to it.
And that’s why you need to hear about the stock today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post One Tiny Biotech Firm’s “Miracle Drug” Could Change the World appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.