IBB/VOO Ratio Explodes to Multi-Year High

The iShares Biotechnology ETF (IBB)/Vanguard S&P 500 ETF (VOO) ratio has just exploded this morning to a new multi-year high. Take a look at the long-term chart. We are in the early stages of a secular bull market for biotech stocks.

Medicure (TSXV: MPH)’s market cap is approximately US$30 million right now but will be US$200 million soon. Click here to read our initial Revive Therapeutics alert from October 2020, when its market cap was only US$44.22 million, immediately prior to its valuation rising to US$150 million+ within months. If you read our alert, we didn’t actually believe in their COVID-19 drug at all. We liked Revive for its early-stage psychedelics only, but acknowledged the COVID-19 drug would drive its value. We 100% believe in Medicure’s MC-1 and are 100% sure it gets approval.

Even when Revive’s Phase 3 trial was completely failing because the placebo group wasn’t being hospitalized for COVID-19, and the stock crashed to below NIA’s suggestion price in early 2022, it still had a market cap of US$40 million at the early-2022 low, which is above what Medicure is worth today. When Revive tried to “change the goalposts” to see if their drug reduces symptoms instead of hospitalizations, it actually rebounded in mid-2022 to a US$120 million market cap. But by then, there were many red flags, and we didn’t like the company anymore at all.

Recognize that Medicure (TSXV: MPH) right now is very early, and most people will chase it once it breaks $10 per share.

Past performance is not indicative of future results. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA’s President has purchased 87,000 shares of MPH and intends to buy more shares. NIA previously received compensation from Revive of US$30,000 cash for a three-month marketing contract which has since expired. This communication is for informational and educational purposes only.