BOSTON (TheStreet) -- Congratulations to the three winners of TheStreet's FDA Drug Approval Contest. Each compiled impressive 10-1 records correctly predicting FDA drug approvals and rejections during the busy month of October.
BioTrekker: A professional healthcare investor (yes, he works at a hedge fund!) whose only miscue was incorrectly predicting an FDA delay for Avanir Pharmaceuticals' (AVNR) Nuedexta. For compliance reasons, BioTrekker asked not to be identified by his real name.
Superrfly: Also known as Matthew Wenzlick, a 21-year-old college student majoring in finance. Wenzlick has been trading stocks since January 2009 and has gradually shifted his focus towards the biotech sector. "Superrfly" didn't start off the contest so super, he got the Hospira (HSP) decision wrong at the top of October, but he was perfect after that.Our third winner, Joe, remains behind a curtain. Joe didn't respond to my email informing him of his good fortune, so perhaps he's just shy. Joe may not want to be identified but I can still congratulate him for an almost-perfect drug approval prediction record. His only blemish was incorrectly predicting the rejection of Forest Labs' (FRX) antibiotic. To quickly recap the contest, these three winners beat out 91 other contestants in correctly guessing the outcome of 11 FDA drug approval decisions in October. What's most impressive about BioTrekker, Superrfly and Joe is that they were among only a handful of contestants who correctly predicted the FDA's rejection of Amylin Pharmaceuticals' (AMLN) diabetes drug Bydureon. To me, that decision was the biggest surprise of the month and it was the turning point for the contest. Guessing right on the Alkermes (ALKS) approval or the rejections handed to Vivus (VVUS) and Arena Pharmaceuticals (ARNA) was fairly easy, but nailing the tough-to-call outcomes like Avanir and Alexza Pharmaceuticals (ALXA) showed true skill. [BioTrekker came oh-so close to running the table and being the sole contest winner because he tells me he was leaning positive on Avanir.] How did our winners manage to go 10-1? "You have to do research independent of the companies and sell-side analysts," says BioTrekker. "Reading press releases is not due diligence. There is a lot of information to be found on the Internet. Use Google, but go beyond the first page of search results. "Run down obscure things. A lot of drugs are old and repurposed. Management teams and companies often have histories they don't necessarily want you to know about. Be a skeptic," he adds. Superrfly i.e. Wenzlick says he pays attention to whether a drug is unique and targets a large market. "While harder to obtain approval, the unique drugs seem to be the biggest moneymakers for investors."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV