If you are over the age of 50 and consume medication, stop what you are doing and read this right now.
Whitney Tilson says the average American takes upwards of four pills a day, but a new scientific breakthrough is about to make this a thing of the past, and we have one “DNA Titan Company” to thank for it.
If you've ever had a health problem or any kind of serious sports injury, you know that health really is wealth and you would do and give anything to have it back.
Ex-hedge fund manager, adrenaline junkie, and newsletter writer is a pretty accurate description of Whitney Tilson. His teasers tend to focus on large or mega-caps and I have reviewed a few of these here, including his AI Company picks and “EoD” Stocks.
It's no surprise 1 in 3 Americans would rather die early than take a daily pill.
There's also the cost to consider, a retired couple over 65 can expect to spend $315,000 on prescription drugs as they age.
As someone that's relatively young and fortunate enough to never have had to take a pill in my life, I can only imagine what some are going through.
Thankfully, this nightmare scenario may be over thanks to a new breakthrough technology that is also providing a once-in-a-lifetime investment opportunity.
Treating the Symptom, Not the Cause
I only need two stats to prove this claim.
First, nearly 20% of the annual Medicare/Medicaid budget is spent on prescription drugs.
Second, the U.S. ranks 22nd out of 27 high-income nations in health care efficiency.
This stark imbalance means drugs are merely treating surface-level symptoms at best and are nothing more than placebos at worst.
Meanwhile, the people who run pharmaceutical companies are living high on the hog. Three of the top 10 companies on the Fortune 500 list today are healthcare companies, tied with tech for the most of any industry.
One technology is set to reduce our reliance on prescription drugs and disrupt the healthcare industry in one fell swoop with something called precision medicine.
The name of this precision medicine company is revealed in a special report called: The DNA Titan: The Next Trillion-Dollar Company.
It is ours if we take a risk-free trial to Whitney's subscription newsletter, Empire Stock Investor. Normally, the cost would be $299 a year. But for a limited time, we can get a one-year subscription for $99.
The offer includes three bonus reports, new stock picks e-mailed to you each month, and a full 30-day money-back guarantee.
What Exactly Is Precision Medicine?
To fully grasp this breakthrough, we need to first understand what it is based on – DNA.
This guy with tiny eyeglass frames
Is Gregor Mendel. He is known as the Father of Genetics.
His early efforts in the nineteenth century eventually helped lead to the discovery of DNA structure in the early 50s.
In 2003, the creation of genome sequencing that determines the order of chemical building blocks, called bases took things to another level.
Why is this important?
Because genetic factors play a role in nine of the 10 leading causes of death in the United States.
Now, thanks to breakthrough technology, we are finally starting to address the root cause of our health problems and not just treat the symptoms.
Next Generation Sequencing
Previously the company behind this technology had been able to sequence an entire human genome in less than one day.
Today, they are able to complete this process two and a half times faster and cheaper.
So instead of treating a disease after it is diagnosed, doctors can now use DNA sequencing to determine where genes are going to cause problems and target specific treatments for specific individuals.
This is precision medicine.
Immediately, I can see some real downsides if this approach were to fall into the wrong hands. Specifically creating and selling drugs for profit that treat imaginary diseases.
But the upside of finding disease risks and treatments that will work best for you on an individual level is even more promising.
Either way, the healthcare industry is racing toward precision medicine thanks to genetic sequencing.
Sequencing is becoming more efficient by the day and one company builds the machines that help DNA be sequenced at lightning speed.
Thanks to its speedy and effective new technology, medicine will no longer be generic, and gone will be the days of taking a bunch of pills and hoping for the best.
Let's find out what company Whitney is talking about here.
Revealing Whitney Tilson’s DNA Titan Company
We are offered a string of clues about this next-gen business:
- This company dominates its industry with a more than 80% market share. Anyone who has ever had their DNA sequenced has most likely had it go through one of their machines.
- It has treated its loyal shareholders like royalty. Yielding 10-year returns of 720% for investors.
- Their newest product could drive up demand even higher. Roche, Bristol Myers Squib, Merck, and even Amazon has partnered with them to get a piece of this growing market.
Based on these clues, Whitney's pick is Illumina, Inc. (NASDAQ: ILMN). Here is how the clues align:
- Illumina is the largest gene-sequencing company in the world, with a market share of over 70%.
- From 2013 to 2021, Illumina stock appreciated by more than 700%. It has sold off since.
- This past March Illumina launched its first product enabling long- and short-read DNA sequencing on one instrument. Its partners include Roche, Merck, and Amazon Web Services for genome data storage.
Last Chance to Buy into a Company with Trillion Dollar Potential at a Discounted Rate?
Healthcare stocks are typically high risk, high reward.
In Illumina's case, the risk is lessened as it is already a well-established $28 billion dollar business. But does it have the kind of future potential Whitney believes?
The premise is that the cost of DNA sequencing is falling, which will open the floodgates of people wanting to get their DNA sequenced, and this will in turn lead to the disruption of the $12 trillion health care industry through the development of personalized medicine.
I buy this argument in part, as it is an improvement over the generic medicine we have today. However, to remain a market leader in a cutting-edge industry like medicine takes continuous investment in R&D. This always, without exception, lowers returns for investors over the long term and is part of the reason for lower dividend yields in this sector.
Illumina is a growing business for sure, but it is no bargain at 6x sales, and in my humble opinion, there are opportunities with better underlying economics for better prices in the market today.
Quick Recap & Conclusion
- Ex-hedge fund manager Whitney Tilson says popping medical pills is about to be a thing of the past thanks to a new scientific breakthrough, and we have one “DNA Titan Company” to thank for it.
- The technology that is about to reduce our reliance on prescription drugs and disrupt the healthcare industry in one fell swoop is something called precision medicine, and one company is perfectly positioned to dominate this space.
- The name of this precision medicine company is revealed in a special report called: The DNA Titan: The Next Trillion-Dollar Company. It is ours if with a risk-free trial to Whitney's subscription newsletter, Empire Stock Investor for $99 for a limited time.
- Fortunately, we were able to reveal it right here for free based on the set of clues Whitney provided in the teaser. Drumroll please…the “DNA Titan” is Illumina, Inc. (NASDAQ: ILMN).
- Healthcare companies are notorious laggards when it comes to returns on equity due to their high operating and ongoing R&D costs. For this reason, I'm not backing up the UPS truck to buy ILMN.
Is there a better precision medicine stock out there? Let us know what you think in the comments section below.