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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i team,

Back to AMRN. I thought they hit a home run yesterday with a unanimous (16 to 0) vote of the Advisory Committee to approve an expanded label use of Vascepa for treating various heart-related conditions, which should give them access to a much larger patient population base. However, the market is not so sure as the response is very muted at least so far today, and that may change. I took a small position to manage risk as I expected a big move one way or the other. I recognize this still has to go to the full FDA in a few weeks, but I understand that the FDA seldom overturns a strong endorsement of the AdCom. Am I missing something here in the muted market response?

Thanks again.
Dave
Read Answer Asked by Dave on November 15, 2019
Q: Hi 5i team,

This is a further question on healthcare and their binary outcomes on drug trials and approvals. I did buy MDT by the way based on its growth prospects and little or no dependence on drug approvals. This question is on AMRN and more generally the FDA approval process. AMRN has an upcoming date with the FDA on November 14th. From a business site, I quote “The Adcom review of the sNDA for Vascepa on its cardioprotective benefit is scheduled for November 14, 2019 with PDUFA planned for December 28, 2019”. What does that mean and how does one go about handicapping the odds of FDA approval or not? If this is largely a coin flip, then I will pass. If it is a progression towards likely approval, I may take a small position. I also understand that AMRN will be subject to a trading halt on Thursday while the review process is underway.

Thanks again for your insight into AMRN and the FDA approval process.
Dave

P.S. I notice that NXTC is down over 50% in the pre-market, a stock you mentioned in the FP for its crazy run last week. I thought tech stocks were volatile. They trade like utilities compared to drug stocks!
Read Answer Asked by Dave on November 11, 2019
Q: So, results released and not pretty. I took a small position in this April 2018 (1.75% of Non-Reg Acc) and have been watching slow decline ever since. With today's bad news stock is down to new 52-week low. Question is, should I hold on, bail, or "double-down"? The Board seems to taking corrective action; the dividend has been cut and is now quarterly. I can afford to wait in the area of 5 years. But, I'm not getting as paid as much to wait today as I was yesterday. Thoughts?
Thank you, as always. Michael
Read Answer Asked by Michael on November 07, 2019
Q: Hi,

I'm looking for 2 lo-volatility US healthcare picks for the next few years, can you choose one of these (CNC, WCG, UNH, AET, CVS, CI, ANTM,HCP) or any others you prefer?

Second question is there an area of healthcare you think I should stay away from for the next (probably volatile) year?
Read Answer Asked by Graeme on November 04, 2019
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