Mike Havrilla's  Instablog

mikehavRx.com Index Updates is a premium service that provides investors with time-saving information and updates on unique global baskets of stocks that are organized and managed within my 18 HavRx Stock Indexes. The service is provided in the form of 22 PDFs at the subscriber home page which can be accessed upon successful log-in. This is a no-hype, information-based service focused on the healthcare sector and medical innovation that is designed for self-directed investors and traders. The service does NOT include an email alert component or specific investing recommendations, as outlined in the terms and conditions.


http://www.mikehavrx.com/categories/index-updates

In addition, a Google Calendar is available to subscribers for upcoming quarterly conference calls, presentations, and related events for Regulatory Catalyst Index active components and watch list stocks to complement the five daily update reports and binary event tracking data. A second calendar has also been added to track these events for the 17 passively managed indexes. Private companies are tracked by the daily Regulatory Catalyst Index update reports due to their potential impact on competing products of public-traded companies, potential partnerships / acquisitions of these companies, the improving initial public offering (IPO) market, and to expand beyond the current global, public-traded company database of FDA and clinical trial developments.

Regulatory Catalyst Index Update Statistics (as of 5/17/10)

• 542 total entries to track select pending binary event data (FDA decisions, clinical trials)
• 342 companies tracked, including 113 active index components and 15 private companies
• 244 companies under $10 per share, 185 companies under $5 per share

Subscriber Email Feedback :: A.R. writes, "I would like to thank you ahead of time for the service you provide. You helped me greatly two days ago when you provided one-on-one email support right after I subscribed to your service...with the addition of the fifth update report (sorted by ticker), it only took me two days to dissect the contents of the Regulatory Catalyst Index and post them on my 2010 tracking board..." E.S. writes, “As a first time investor, I had many questions on how to start and make smart, responsible decisions while investing my hard-earned money.  After subscribing to mikehavRx.com Index Updates Service, my confidence about investing was greatly boosted...”

A common strategy used by many investors is to buy a basket of several small or micro-cap companies (generally less than $1 billion market cap stocks) with pending binary events (e.g. FDA decision or clinical trial results) approximately 3-6 months ahead of the expected catalyst date and sell into the expected upward momentum in both stock price and trading volume. The goal of this strategy is to greatly reduce the risk of investment losses by taking profits ahead of the binary event by capitalizing on the expected increase in both stock price and volume as more short-term momentum and day traders become active, which typically occurs at about 2-3 weeks out from the catalyst date and results in extreme price volatility and intraday swings.
 

Regulatory Catalyst Index Updates include daily updates for active index components, watch list stocks, and binary event (FDA, clinical trials) summary information. Subscription options include both one-month ($50) and one-year commitments ($300) on a non-recurring, one-time basis with PayPal as the designated payment processor for secure payments that can be made by debit / bank card, credit card, checking account, or a registered PayPal account (please note that a PayPal account is not required to subscribe or pay for this service on a non-recurring basis). Please contact us for special 50% discount promo codes for annual subscriptions for college students, investment clubs, and subscribers to my previous FDA Calendar or other similar services.

Currently, 22 PDFs and Google Calendar access are available to subscribers, including 17 files for each of the passively managed index components and five files for the actively managed Regulatory Catalyst Index. The Regulatory Catalyst Index reports are updated daily on regular business days between 6-8pm (ET) and the five reports are sorted by company name, stock ticker, catalyst date, stock price, and the date of most recent update for each entry.

• HavRx Regulatory Catalyst Index: daily updates for actively managed index components, watch list stocks, and selective binary event (FDA, clinical trials) information in a summary format as illustrated below, including performance tracking and statistics at the Investars YOU website since June 2009 from a starting value of $1,000.

...Mike Havrilla hopes to carve a full-time livelihood with a website on health care and medical innovation investments - and help others make a few bucks trading, too. Havrilla left his full-time job as a pharmacist last year and has concentrated on his own stock investment site, mikehavRx.com. These types of stocks are high-risk, high-reward, so you shouldn't put all your money into one stock. Instead, try a basket approach. Jump early and pick five or 10 stocks you think might do well. One winner can make up for all of the losers...

The full article is available at: http://www.altoonamirror.com/page/content.detail/id/529268.html

The site launch press release is available at:http://www.marketwire.com/press-release/mikehavRxcom-Keeping-Investors-Informed-on-Pending-FDA-Decisions-Clinical-Trials-1137273.htm

A common strategy used by many investors is to buy a basket of several small or micro-cap companies (generally less than $1 billion market cap stocks) with pending binary events (e.g. FDA decision or clinical trial results) approximately 3-6 months ahead of the expected catalyst date and sell into the expected upward momentum in both stock price and trading volume.

The goal of this strategy is to greatly reduce the risk of investment losses by taking profits ahead of the binary event by capitalizing on the expected increase in both stock price and volume as more short-term momentum and day traders become active, which typically occurs at about 2-3 weeks out from the catalyst date and results in extreme price volatility and intraday swings. Below is a link to my four-minute video that includes an overview of mikehavRx.com and this binary event investing strategy...
http://www.mikehavrx.com/categories/videos

www.mikehavRx.com is your prescription for stock index investing updates focused on the healthcare sector, medical innovation, and pending binary events such as FDA decisions and clinical trials. The actively managed HavRx Regulatory Catalyst Index update report is currently tracking 505 entries and 312 companies (including over 150 stocks trading under $5 per share). Promo codes (50% discount) are available for college students, investment clubs, and subscribers to my previous FDA Calendar or similar services.

The established products division consists of branded generics, which represent off-patent products subject to generic competition that are able to retain many of the characteristics of proprietary pharmaceutical products - especially in emerging markets - representing significant opportunities for long-term sales growth and profits. The agreement combines Abbott's established infrastructure in emerging markets (which account for approximately 20% of its total pharmaceutical sales) with the products being developed by Zydus for a wide variety of conditions and expected commercial launches in early 2012.

The HavRx Global Generic Drug Index is passively managed and tracks the performance of 75 companies which meet any of the three inclusion criteria outlined below.

1.) Derive either $500 million (USD) OR more than 50% of trailing 12-month revenue from the manufacture and sale of any type of generic (off-patent) prescription or over-the-counter (OTC) drug product intended for use by humans, including contract manufacturing services, active pharmaceutical ingredient (API) suppliers, and intermediate product suppliers for drug products and biological agents;

2.) Have one or more compound(s) in active clinical development OR have a pending ANDA with the FDA for a generic drug candidate; or

3.) Receive FDA approval for an ANDA within the past 12 months. The index excludes all companies that derive over 50% of trailing 12-month revenue from the sale of patent-protected or legacy brand prescription or OTC drug products.

As illustrated in the chart above, the HavRx Global Generic Drug Index has gained approximately 70% since being tracked on an equal-weight basis at the Investars YOU website from 6/24/09, outpacing the S&P 500 Index by over 2X. In addition, generic drugs have outpaced existing healthcare, pharmaceutical and even biotech exchange-traded funds (ETFs) over the past year, including the PowerShares Dynamic Pharma (PJP) (+29.6%), iShares DJ US Pharma (IHE) (+28.9%), Pharma HOLDRs (PPH) (+4.7%), S&P Pharma SPDR (XPH) (+49.6%), Healthcare Sector SPDR (XLV) (+16.2%), iShares Nasdaq Biotech (IBB) (+27.6%), and SPDR S&P Biotech (XBI) (+21.8%).

Approximately 75% of the companies in the HavRx Global Generic Drug Index are based outside of the U.S. (including many small and mid-cap stocks based in emerging markets such as China and India), which strengthens the case for the development and launch of a Global Generic Drug ETF - which would provide both retail and institutional investors a cost-efficient means to trade this globally diversified, growth industry in a single, cost-effective and convenient investment vehicle.

The strong underlying fundamentals for the global generic drug industry are outlined below.

1.) approximately 70% of all prescriptions in the U.S. are filled with generic drugs;

2.) IMS Health estimates $135 billion in branded drug sales (including $90 billion in U.S.) will face generic competition / patent expiration over next five years (including blockbusters such as Lipitor and Plavix);

3.) IMS Health estimates $42 billion in global generic drug sales in 2011, representing growth from an expected $28 billion in global sales in 2009 and $17 billion in 2008;

4.) IMS Health estimates that the generic drug industry is growing at 7.8%, which is a faster pace than the worldwide market for pharmaceuticals; and

5.) the National Association of Chain Drug Stores estimates that in 2007 the average retail price of generic prescription drugs was $34.34 as compared to a much higher (over 3X) average price for brand name drugs at $119.51.

www.mikehavRx.com is your prescription for stock index investing updates focused on the healthcare sector, medical innovation, and pending binary events such as FDA decisions and clinical trials. The actively managed HavRx Regulatory Catalyst Index update report is currently tracking 544 entries and 343 companies (including over 150 stocks trading under $5 per share and 14 private companies). Promo codes (50% discount) are available for college students, investment clubs, and subscribers to my previous FDA Calendar or similar services.

Disclosure: No positions