Oxford Club Radio: Brad Loncar on Biotech Trends and the 21st Century Cures Act
This week on Oxford Club Radio, Marc interviews Brad Loncar. He’s a renowned authority on biotech investing and the creator of the Loncar Cancer Immunotherapy ETF (Nasdaq: CNCR). In the clip below, they discuss the 21st Century Cures Act and other biotech investing trends.
The conversation starts with the controversial 21st Century Cures Act. Marc admits that he’s ambivalent about the soon-to-be law. He understands that it will benefit biotech companies. But he’s worried that it could harm patients by lowering drug safety standards.
But Loncar points out that there are many causes for optimism about the bill. It’s a bipartisan measure that is earmarking billions for cancer research. And Loncar does not feel that the FDA will loosen its standards.
Loncar explains that the bill will just accelerate the review process rather than loosen it. A good example is the new review process for experimental drugs for terminal illnesses like muscular dystrophy. Going forward, they can be approved based on “biomarker” results and other lab data. Previously, these cutting-edge drugs had to wait through a full round of clinical trials.
(On a side note, the 21st Century Cures Act is one example of how new policies will transform the markets in 2017. To show you how to prepare your portfolio, Marc is hosting a webinar on January 19th. You can sign up for this free online event here.)
Moving on, Marc asks Loncar about the general sentiment in the biotech field. According to Loncar, there has been a “wait and see” attitude in the industry since the election. Hillary Clinton’s unexpected loss was a relief to the drug industry, but lots of uncertainty remains.
Who will Trump appoint as head of the FDA? What will he do to drug prices? There are many unanswered questions about the future regulatory state of affairs.
Loncar says he’ll be paying close attention to business sentiment in the near future. He wants to see more M&A activity, more investment and less “financial engineering.” He feels that biotech companies have done too much price gouging and tax inverting lately. They need to return to productive uses of money that demonstrate fundamental strength.
After a short break, the two continue to discuss biotech trends for another segment. But to hear that, you’ll have to listen to the full episode.
This is just a sample of the insights from this week’s Oxford Club Radio podcast. To listen to the full broadcast, click here. And while you’re there, be sure to subscribe (it’s free).
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