Medical Marijuana's Breakthrough Moment

Written by Nick Hodge
Posted August 16, 2017 at 1:02PM

A little over two weeks ago I announced our participation in a private placement for a biotech company with a breakthrough delivery system for medical marijuana.

That placement is set to close on August 17th. Tomorrow.

Your window to invest is rapidly closing.

Read my initial recommendation here. 

I’m updating you today because of an event that occurred on August 7th.

A tiny biotech company surged from $17.15 to $31.45 overnight. Not only that — this stock, which you’ve likely never heard of, is now trading at $36.70.

It currently has a $1.28 billion market cap.

This move has enormous implications for the company we're investing in, which is still private but planning an IPO.

You see, this company isn’t another “me too” medical cannabis story. What sets it apart is its patented nanotech drug delivery breakthrough.

It stands to potentially improve the economics of cannabidiol (CBD) therapy by an order of magnitude — unlocking dozens of new treatments.

Why does that matter?

Right now, GW Pharmaceuticals (NASDAQ: GWPH) is the industry’s 800-pound gorilla.

At $101.75 per share, it's worth $2.58 billion.

GWPH already has one multiple sclerosis therapy approved in the UK. It has another for Dravet and Lennox-Gastaut syndromes in Phase III clinical trials.

But, these are tiny conditions affecting as few as 1 in 40,000 people.

Due to major bioavailability problems with CBD… GW Pharma can’t treat more common inflammatory conditions like arthritis or heart disease.

At least, not for a price your insurance company is willing to pay.

That brings us to MyoKardia (NASDAQ: MYOK).

On August 7th it announced positive results in its Phase II trial for a new heart therapy, targeting obstructive hypertrophic cardiomyopathy (OCH).

I know, it’s a mouthful. OCH is a rare heart disorder that is often genetically inherited. It affects 1 in every 3,195 Americans, or some 95,000 in total.

It’s about 10x more common than Dravet syndrome.

That’s why MYOK rocketed up 113% within 48 hours of announcing positive news on its Phase II trials — adding $790 million to its market cap.

Now here’s the thing: while OCH is a more lucrative disease than anything GW Pharma is targeting, it’s still considered a relatively tiny condition.

The company we're investing in this week is targeting diastolic heart failure — a condition that affects over 5 million Americans. It costs the U.S. economy $30 billion per year.

That makes it a significantly larger financial opportunity. Especially because…

The company expects to be in Phase II trials within 15 months.

I fully expect the market will recognize its potential with a valuation leap.

As of this moment, you can still participate in its private placement at $2.00 USD per share. After August 17th, that window will have closed.

Full details are here if you'd like to participate. 

Call it like you see it,

Nick Hodge Signature

Nick Hodge

follow basic@nickchodge on Twitter

Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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