A Historic Action
In recent years, I have found my family to be filled with some folks in the health professions: including a daughter who is now an R.N.; another who is in her 4th year of medical school; and a soon-to-be son-in-law earning a graduate degree in biomedical engineering. For that reason, and financial ones, as well, I found the comments below interesting – I hope you do, too.
Just a reminder: our office will be closed for the holiday this coming Monday, September 4th. We wish you a wonderful holiday weekend, filled with family, friends and NO LABOR whatsoever!
Excerpted from Raymond James’ “Morning Tack” by Andrew Adams
Perhaps lost among the North Korea/Hurricane Harvey/debt ceiling focus this week was a story with the potential to have an even bigger long-term impact to the markets and the economy. As reported by Futurism.com:
"In a decision that will forever change cancer research and treatment, the U.S. Food and Drug Administration (FDA) approved a revolutionary cancer therapy on Wednesday, making it the first ever cell-based gene therapy now publicly available in the United States. The decision - which the agency calls 'a historic action,' - came more than a month after an FDA panel recommended the treatment… It works by using a patient's own T cells (a type of immune cell) to fight cancer…'We're entering a new frontier in medical innovation with the ability to reprogram a patient's own cells to attack a deadly cancer,' FDA commissioner Scott Gottlieb said. 'New technologies such as gene and cell therapies hold out the potential to transform medicine and create an inflection point in our ability to treat and even cure many intractable illnesses.'"
The "historic action" was, indeed, momentous, but we think treatments like this are likely just one of the many transformative, life-extending breakthroughs in modern medicine that will arrive in the next few years. We have written in the past about the "intersection of health care and technology" being one of the areas to drive this secular bull market higher and have recommended exposure to the biotechnology sub-sector because of its unique growth potential. The "biotechnology bounce" off of support that we said was possible in the August 23rd Charts of the Week has now taken the NASDAQ Biotechnology Index to its highest point since late 2015 after yesterday's fresh breakout (see chart on next page). It may now be a tad extended on the upside, but the FDA's decision this week augurs well for the long-term if we do start to see these types of revolutionary drugs, procedures, and treatments approved for use.