Hello etorians, I want to share with you a new investment opportunity that I learned about at a recent conference. Itโ€™s called protein degraders and itโ€™s one of the hottest emerging technologies in biotech right now. ๐Ÿ”ฅ

Let me explain to you why you should include protein degrader stocks in your portfolio.

Description

Protein degraders are one of the next big thing in biotech! They are drugs that can destroy any protein in the body by gluing them to a โ€œtrash canโ€ enzyme. This way, they can kill cancer cells, cure autoimmune and neurodegenerative diseases. ๐Ÿ’ฅ

Unlike old drugs that just block proteins, protein degraders can get rid of them completely. They can also target proteins that are hard to reach or bind with normal drugs.

But let me first explain what are proteins and why degrading them can have therapeutic effects. Proteins are molecules that perform various functions in the cells. Proteins are constantly synthesized and degraded by the cells to maintain a balance between their production and removal. Protein degradation is a process by which proteins are marked for destruction by a molecule called ubiquitin and then broken down by a complex machine called the proteasome. This process is essential for the cells to get rid of damaged, misfolded, or unwanted proteins that can cause harm or interfere with normal functions.

Furthermore, protein degradation can have therapeutic effects by removing proteins that are involved in causing or promoting diseases, such as cancer, inflammation, infection, or neurodegeneration. For example, some proteins can act as oncogenes, which are genes that can turn normal cells into cancer cells by stimulating their growth and survival. By degrading these oncogenic proteins, the cancer cells can be killed or stopped from spreading. Another example is proteins that act as transcription factors, which are proteins that bind to DNA and control the expression of other genes. By degrading these transcription factors, the expression of genes that are associated with diseases can be reduced or altered.

Business landscape and competition

One of the leaders in this field is Arvinas Inc. ($ARVN), which has a protein degrader for prostate cancer called ARV-110, and it is the latest addition to my portfolio. It targets the androgen receptor (AR), which is involved in the growth of prostate cancer. ARV-110 is in phase 2 trials and has shown encouraging results in phase 1/2 and with very limited side effects. Results have been published here https://ascopubs.org/doi/10.1200/JCO.2022.40.6_suppl.017. Arvinas also has other protein degraders in the pipeline for breast cancer, ovarian cancer and Alzheimerโ€™s disease (see table below).

There are other companies and stocks that are working on protein degraders, such as C4 Therapeutics, Kymera Therapeutics, and Nurix Therapeutics. They all have different strategies and technologies for making protein degraders more potent, selective and safe. Protein degraders have huge potential to treat many diseases that are currently untreatable or poorly treated by existing drugs.

Opportunity

If you are looking for a high-growth and high-reward investment opportunity, protein degraders are something you might want to consider. Following the crash of biotech industry in the past year (see $XBI and $ARKG), it is a great time to enter this sector by including new promising technologies such as protein degrader stocks. Just to give you an example of the upside potential Prometheus Biosciences which has therapeutic at similar development stage of $ARVN (Phase 2) has been recently acquired by $MRK for USD 10.8 Billions, that is x10 current market cap of $ARVN. ๐Ÿš€

Risk

โ—Keep in mind that investing in emerging biotech is very risky:

1๏ธโƒฃ None of these therapies are anywhere near receiving approvals. Majority of drugs in clinical trial never make it to the market. Even after entering phase 3, the chance of making it to the market is only 50%! (probability varies based on the disease)

2๏ธโƒฃ Small biotech might not have sufficient funds to complete clinical trials. Therefore, they will likely have to raise capital by shares dilution or by partnering with larger pharmaceutical companies. Such partnerships will also reduce future revenue.

3๏ธโƒฃ Protein degraders are still a new technology and although we have seen promising results, there is no guarantee that it will be more effective than other technologies.

โœ… To eliminate or reduce these risks, only invest a small part of your portfolio in these stocks. If you are interested in gaining exposure to exciting technologies that have to potential to improve the life of millions of people, you can consider to copy my portfolio.


This is a list of protein degrader therapeutics in the picture below (source: Miklรณs Bรฉkรฉs et al. Nature Reviews Drug Discovery, 2022):


Check the etoro profile to find other exciting tech and biotech investment themes that Iโ€™m looking right now https://etoro.tw/3ocYAaN

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