Precious Metals

[gfp927z]

Cempra - >>> 3 Bold Bets on the Future of Biotechnology


These three companies have wagered millions on moonshot concepts.



Brian Feroldi

Sep 25, 2016




http://www.fool.com/investing/2016/09/25/3-bold-bets-on-the-future-of-biotechnology.aspx?source=yahoo-2&utm_campaign=article&utm_medium=feed&utm_source=yahoo-2



While we Fools generally invest in companies that are established and generating cash, we also recognize that there's room for speculation in almost any portfolio. After all, companies that go on to create the next big thing can produce life-changing returns for their shareholders.

With that in mind, we asked our team of healthcare contributors to each highlight a company that has bet big on an emerging area of biotechnology. The companies they picked: Cempra (NASDAQ:CEMP), Intrexon (NYSE:XON), and GlaxoSmithKline (NYSE:GSK). Read on to find out why.

Next-generation antibiotics

Brian Feroldi: Since antibiotics were first discovered roughly 90 years ago, they have saved countless lives. However, we have been overusing them for decades, which has caused some harmful bacteria to build up resistance. That's become a real problem: antibiotic-resistant pneumonia rates currently exceed 50% in the U.S. Clearly, there's a huge need for new therapies.

Cempra is one company focused on finding a solution. The company's lead compound is called solithromycin, and it's currently pending FDA approval as a treatment for community-acquired bacterial pneumonia, or CABP. Roughly 5 to 10 million cases of CABP are diagnosed annually in the U.S., so if solithromycin can win the green light from regulators, then this drug could turn into a blockbuster.

The FDA's antimicrobial advisory committee is set to meet on Nov. 4 to discuss solithromycin, so investors should have a good idea of which way the agency is leaning in just a few months' time. If everything goes according to plan, I could easily see Cempra's stock soaring higher from here.

<<<