Site Payment Vendor Selection – Things to Consider

Hi everyone welcome to another episode
of ClinBiz where we love connecting with you on the business aspects of
clinical trials, so in today’s video we’re actually going to cover a topic
that we’ve been getting a lot of questions on here at Clinbiz which is a
topic of what are some things to consider when selecting a site payment
vendor? So we’re actually going to cover a few top tips today but we’ll have the
complete and full checklist later on this month to our newsletter subscribers
so if the topic interests you or you like to share with your teams make sure
you subscribe to our newsletter at CLINBIZ.COM. All right so stay tuned Well, welcome back so today we’re going
to talk about what are some things to consider when you’re selecting a site
payment vendor? So a site payments are usually payments that a clinical study
sponsor needs to pay an investigator site during the course of a clinical
trial for the work they perform in that clinical trial well it sounds simple enough right? But for some reason a lot of study sponsors
have had an issue and this is a pain point in our industry with actually
paying the sites on time, with the proper details accurately and all those kind of
things and this is where site payment vendors and services have come up in the
last few years which is great that we’re having some innovation in the industry
but that leaves us with some additional questions for when you’re selecting
those vendors what are some things to keep in mind and that’s what we want to
address in our video today. So what are some things some top the tips that you
need to make sure you have in place or you ask the proper questions when you’re
selecting a site payment vendor? So number one you should really first
establish what is the site payment model that you’re going to follow for your
organization and by that I mean are you going to fully outsource the payment
function meaning the people and the technology is going to be completely
done by your site paying vendor? Are you gonna be doing that? We’ll call that the
fully outsourced model. Or are you gonna be doing it in-house fully where you have
the people in-house and you have your own homegrown or good old Excel
spreadsheet that you’re using in-house and in that case you actually don’t need a site payment vendor. Or using a type of hybrid
approach? Again this is not a full, you know, checklist or anything like that but
for the purpose of this video we’ll stick with these three main types of
models and we’ll actually just address a fully outsourced and hybrid model for
the questions on this video. And the hybrid model would be when you have
in-house people to actually perform the site payment function but you’re looking
for a technology to better serve that function so you’re going out to a site
payment vendor to get that okay? So let’s jump onto some questions and some things
you need to have in mind when you’re selecting these vendors and let’s think
as if you’re going with a fully outsourced model or a hybrid
where you’re actually using the technology of this vendor. So one of the
very first things I would look for is what is the ease of working within
that system that site payment vendors system or using your services, how easy
is it to use it if you’re going to be using it in-house as a study sponsor
with your own people and their technology, or if you’re going to be
full outsourcing, how easy is it to work with them? How easy is it for sites to
work with them or perhaps even if there’s going to be a site facing portal
let’s say from that vendor with their technology how easy is it for sites to
actually get in and work there? And you know you’re gonna need to ask for some feedback in the industry of course and colleagues and
things like that, but also for you to be able to look at the system demo way and
things of that nature how easy is it to use? One key tip here I would say is
invite an end user, a person that’s gonna be going day in and day out of
performing site payments to actually take a look at the site payment vendor
systems and their processes and services because they are the key people that are
going to come up with very very good questions for you to ask your vendors
right from the beginning, so have your end user whoever’s gonna be doing site
payments actually test out the site payment vendors technologies or in the
very least see a demo and get information from them and they’re going
to actually be able to generate much much more questions for you. Also what is
the ease of the integration of their system with your own systems, right? How
easy is it to integrate their systems in connect their systems with other systems
that you may have, perhaps you want to connect them to your SAP system where a
CTMS system how quickly and also how easy is it to do that? How easy is the
integration? Does the site payment vendor provide that that technology as a
standalone or as a module or do you need to you know or get the other full suite of
systems or full suite of modules for that service how easy is it to integrate
with others? So very important the integration question and the
connection question for your site payment vendor. Something else you need to
look at is to confirm a couple of these things, again not a full
list here on this video. We’ll have that later on for you but how is that
site payment vendor going to accommodate things such as multiple payees, multiple
arms and sub-studies. We know that for let’s say multiple arms a lot of
oncology studies and some other studies are also very complex and they may have
multiple arms and that can become a nightmare for site payments believe it
or not if the proper configurations are not done in that payment vendor
technology or in your processes as well. so you need to think about it and ask them
and if possible ask to actually see how in their system it’s done – how multiple
arms are handled, sub studies and multiple payees. For example, outside of the
US it’s very normal to have multiple payees for an investigator site meaning
the study sponsor actually needs to pay that investigator site whatever payment
they’re going to make but they’re going to need to split it up among a
couple of different payees. So how is that site payment vendor going to be
handling or if in-house you’re going to be using their technology – how will your people be able to handle that in their system. So very
important questions to ask: multiple arms sub studies and multiple payees.
Something else you need to confirm is about budget amendments. Now
we know, if you’ve been in a clinical trial space for a while you know that
protocol amendments are inevitable sometimes in certain studies and these
protocol amendments if they have an impact on the budget they will need
to be updated, the budget amendments and actually have an impact on the site
payments as well. So when that happens you need to be asking upfront and seeing
in real time with your vendor how are they going to be addressing budget
amendments so when there is a budget amendment for a trial how are they going
to be doing that in their system and how long that’s going to be
taking. What’s the turnaround time? If your own people are going to be
using the system then I would suggest if at all possible to have your people go
into system and test it out or at least have the vendor demo out to you how
exactly a budget amendment would be done in real time. How much time – how quickly
you can get that done because that’s going to be one of
the determining factors for you to make that selection so it’s very
important to at least know and be prepared of how long that’s actually
going to take you in terms of budget amendments and their impact on site
payments. So ask those questions and ask to see how long that would take in their
system to have a budget updated which would impact new payments to your sites.
Something else you need to be thinking about is also what if there’s
an issue with the site or in a certain region and the site cannot or does not
want to use that technology site payment vendor’s technology for whatever
reason. They can’t log on to their portal or they do not want
to whatever is the reason – what are exception processes they already have
in place when those kind of things happen. Your site payment vendors should
be able to tell you or at least give you a couple of options of when situations
arise that do not follow the standard process what are some things that can be
available and then you can also see if those work for you and in-house
within your own organization as well because those situations do come up
especially if you’re going outside of the US so you need to be prepared to
deal with site payment vendor exceptions whenever you need to do that. Something else you need to be thinking about is also how will they be funded
and that’s a question you need to be asking the. Is it something that you’re
going to need to pre-fund a large amount to the site
payment vendor in order for them to make those payments? Is there going to be a
Just-In-time approach? Is there going to be a mixture of both or
something else? You need to be asking how they will be
funded and I would include also some folks from Finance at some point because
they’re going to be included at some point anyways in the
conversation so really find out how that
will be done for that site payment vendor to actually make the payments on
your behalf as a study sponsor. Ask those types of questions. The
last thing we’ll talk about here in this video, again full checklist coming up
later on this month for our subscribers, but in this video I’ll just say and it’s
something I recommend in many of our videos is to make sure that any
agreements, any promises in terms of turnaround times, in terms of
capabilities and the system – things that are available to you are really captured
in either a contract or a full guidance document of some sort
and referenced in the contract as well. this will be very important to keep all
parties accountable again not just a site payment vendor but also the study
sponsor on exactly what was agreed to, on exactly what were the conversations
in the beginning because obviously at the time everyone’s trying
to sell you a product,you know some promises can be made and so you want to
make sure that everyone is held accountable to what was agreed up front.
It’s not a problem if something is not possible in a system or things of that
nature but it’s very important that you understand from the beginning what is
possible versus not. So again, capture everything in a
document. So there you have it, just some top tips for you if you’re thinking of
selecting and implementing a site payment vendor in the future. Make sure
you have at least these tips down in your conversations and for your
implementation. Again we’ll have a full checklist on selection and
implementation of site payment vendors later on this month for our newsletter
subscribers so make sure you subscribe at I hope to see you at the
ClinBiz Summit 2020 coming up on March 24th through 26th at the Hyatt Regency
in Morristown New Jersey. It’s going to be an amazing conference you can attend in
person or online. If you’re planning to come in person, please do register soon
because we have limited space for that. Make sure you register quickly so
you’re not left out of this event. You can attend online as well and watch the
entire conference via our livestream registration option which is quite
unique and new. You don’t want to miss this conference if you’re at all
involved with the business aspects of clinical trials. You want to
be in that conference, you want to hear the conversations of things that
are coming, things that are happening. We have a ton of different things in the
agenda – check it out at and I hope to see you soon – take
care – bye bye.

Indicators For Market Sentiment | Mike Follett | 12-10-19 | Market Volatility

we do this every Monday or no Tuesday I
said Monday Monday in my mind but Tuesday and actually I’ve got an
announcement for you just so that everybody has a heads up here coming the
beginning of the year so talking about in the new year we’re gonna we’re
actually going to consolidate some classes here
just to you know restructure and make it a little in simplify kind of the webcast
offering here this class is going to be combined with a class that we do on
Friday at 3:30 p.m. Eastern Time so plan on that in January and so this Tuesday
timeslot is going to be filled with a different webcast and that webcast is
going to be more structured toward a total portfolio kind of ongoing
evaluation and process it’s it’s going to be a class that will be focused on
generating income and so forth but from a total portfolio perspective so look
for those changes to be happening if you listen to our other webcasts the other
presenters are probably be mentioning the same thing because we want you to be
aware of the changes that are on their way but I’ve got mixed feelings about it
this has been a great group and in fact we’ve really kind of moved up in terms
of our audience attendance over the last few months and I appreciate you there
but we’re gonna go ahead and combine this with the class again on Friday and
that’ll be at 3:30 p.m. Eastern Time so my name is Mike Follette you can follow
me on twitter @ m Follet underscore TD a and by the way you can follow any of the
coaches Cameron May for example he would be under at sea being right now
currently it’s called the options we can review but I just look for that coming
up in the beginning of the year I don’t forget to subscribe to the channel
either it’s just a great way to keep track of these webcasts okay so now
let’s hit the disclosures and we’ll get into our agenda and get the class
started I just before you get started in investing make sure you understand with
futures make sure you pick up a copy of the risk disclosures for those
and make sure they’re suitable products and that you have approval before you
get started also in order to demonstrate the functionality of the platform today
we’re gonna have to use actual symbols as we do that as we look at these
symbols though just be aware that any investment decision you make and your
self-directed account is solely your responsibility also the paper money
application is for illustrative purposes only and what has happened in paper
money in terms of profit does not guaranteed to translate to live because
market conditions they do change moving on to the next one
past performance does not guarantee future results probability so that’s you
know basically theoretical analysis it doesn’t guarantee what’s going to happen
in the future back testing mentioned this before but looking at the past
doesn’t guarantee what’s going to happen in the future all investing involves
risk including the risk of loss no soliciting no recording and no taking
pictures no part of this presentation should be copied recorded or rebroadcast
in any form without the written consent of TD Ameritrade also you got to
remember those transaction costs as they happen in your portfolio there’s a quick
look at how those might appear although commissions are gone there are still
fees associated with certain products options and futures being part of those
when you’re dealing with complex trades like spreads or multi like strategies
that can increase complexity also there’s a quick look at the Greeks Delta
Gamma Vega and theta with their definitions and just as a reminder those
are theoretical measurements alright so on to our discussion what we’re going to
talk about today I already made the announcement you can see here on the
left-hand margin over here on the side this is our typical agenda and I wanted
to make sure I made the announcement about the new class structure coming up
beginning of the year you’re going to love it and again this class will be
confined combined with the class happening on Friday at 3:30 p.m. Eastern
Time with the six foot ten Talton actually I
don’t think he’s six foot ten I think he’s six foot seven Cameron may but he
does an outstanding job if you haven’t listened to Cameron check him out if you
have listened to Cameron you know that he does a terrific job but I wanted to
make that announcement and now what we’ll focus on today
and this is going to be kind of the primary learning objective as well I
want to introduce you to a sentiment indicator a sentiment indicator that
oftentimes investors will use as a gauge for overall market sentiment you know
you could apply this to individual stocks as well but think sentiment and
we’re actually going to apply this to broad markets and the sector’s just to
see what the sentiment is looking like in the different sentiment or in the
different sectors that are out there you know one of the things that we like to
do on a week-to-week basis is take a look at some of the sector performance
that’s out there also in addition to that Brent Moore’s he actually does a
sentiment class and really it’s not sentiment it’s more like market rotation
class every Wednesday evening I’d encourage you to check that out but we
do like to take a look at some of those sectors and Brent Moore’s will go into a
deeper dive on that as well on Wednesday so we’ll apply this market sentiment
indicator it’s actually called the market forecast but I’ve actually
retitled it to something called the market maybe because in my mind market
forecast is actually a pretty strong term all right but market sentiment
using an indicator that maybe you’ve never seen before
and it’s it’s designed to gauge sentiment for different time frames now
in addition to that as always we’re gonna take a look at things that might
cause movement in the market this week and boy there are a few of them and that
could be a part of the reason why the VIX is moving so much in terms of to the
upside actually and I’m going to bring up the VIX right now as we take a look
at the VIX over the last couple of days although in really the last week or so
although the market hasn’t really gone down too much we’ve seen a pretty
substantial tick up here and implied volatility and this is the VIX right now
why would implied volatility go up I you know especially this much when the
markets talking about the S&P 500 this comes from S&P 500 index options the
markets haven’t really sold down very much right I mean just a couple of ticks
down but in the last couple of days we’ve
scene vixx actually make a substantial move higher well why in the world would
that be happening well the reality of why it’s happening is because traders
are willing to pay more to buy options that’s why the VIX goes higher option
premiums are going up and why would traders pay more to buy
options well because they’re expecting that there might be larger moves coming
up in the future and so if you if you if you see this happening sometimes it
results in a big nothin sandwich but you can see here that how that VIX is ticked
up but even if this doesn’t materialize into anything what traders might do if
they start to see unusual movement to the upside in VIX like that they might
want to step back and just evaluate what’s happening in the market right
just what do they need to keep their eyes peeled for that maybe they’re not
aware of in the economy or in general well trade war situation and those are a
couple of big things that we’re dealing with right now namely condition of the
economy and also the status of the trade war and those are the big things coming
up this week we’ll talk about those in just one second in a little bit greater
detail but because I mentioned I want to go into the sentiment indicator I’ll
actually start there and we’ll circle back around and we’ll take a look at at
some of the economics of things that traders might want to be aware of this
week but that is just a big heads up out there when you see the VIX moving like
that heads up traders are starting to price in some potentially larger
movement on the horizon than what we have seen again sometimes it results in
nothing and the VIX comes right back down again
but let’s go ahead and get into this sentiment indicator and we’ll apply this
to the broad market just to get this started I’m going to go ahead and bring
up the SPX here and the sentiment indicator that I’m talking about right
now is at the bottom of the screen and let me switch my time frame just so that
we’re zooming in a little bit and you can see everything just a little bit
better I’ll zoom in too how about a 3-month graph here so just
making an update we’ll go to a three-month graph so this indicator is a
little bit customized I’m actually calling this the market maybe there is
an indicator that you can bring on to your screen called the market forecast
which is actually the source of this indicator that you’re seeing on this
screen but I actually call it the market maybe and I’ve added just a couple of
additions to this to represent overbought and oversold zones so
basically above 80 here that’s I will tweet out this is not the default
structure of that indicator but I’ll just go ahead and tweet out a link I
just look at my Twitter it’s at M Follet M fo ll ett underscore t da but when
this class is finished I’ll go ahead and tweet out that link and if you like it
you can actually just add this indicator yeah again it’s basically the same thing
as the market forecast I’ve just retitled it and giving it these zones
for clarity basically is it but if you want that I’ll go ahead and just tweet
out that link at the conclusion of the class today now let me just show you
really quick how you can bring up that default market forecast indicator though
the one that’s just kind of the source of everything here if you go to the
graph up here or not the graph but the beaker icon at the top of the graph this
is where you can add different studies and indicators to your chart you
remember that right just in the menu look for market they are ket forecast
and that’s it right there you should be able to double click on that you can add
that to your screen let me just kind of show you the difference between these
two things I’m gonna have to add selected we’ll hit apply and then okay
they’re basically the same thing here again the difference is titling and the
fact that I’ve added some overbought and oversold zones just manually those have
been programmed into the graph also let me talk about part of the reason why
some traders especially if they’re focused on what might happen with regard
to volatility volatility also also is accompanied by
direction in many cases right and based on investor sentiment that might give a
clue to investors about where that volatility and where that direction
might be headed so some traders will one way to think of
investor sentiment is to take a look at for example let me just grab a tool here
see that day right there just kind of trying to highlight that where we saw
some pretty significant down price action and also we had the market close
near the bottom of its range so that was a pretty darn bearish day right and
someone could say there was a lot of bearish sentiment on that day and the
reason for that is well basically two things where did price go at what
magnitude and where did it end up within it the range right if you can just kind
of visualize that if if prices are closing near the bottom of the range
that’s bearish sentiment if prices are going down
that’s bearish sentiment if there are relatively larger down moves closing
near the bottom of the range that’s an increase to bearish sentiment if that
makes sense right but that’s basically what these indicators are trying to
accomplish these sentiment indicators and so that’s not the whole story but
just kind of boiling it down to something that’s easy to understand
that’s kind of where this market maybe comes from it’s trying to track that
velocity of and also well two things the velocity of and the direction of
cinnamon now the thing is this breaks that sentiment down into different
pricing cycles as well in fact if you look close here there’s actually three
lines there’s a green a blue and a red these are sentiment lines that track
different pricing cycles so there’s just algorithms that are plugged in there for
different time frames right now these timeframes generally are associated with
different segments of time right so let me sort of define those for you the
green tends to uncover sentiment anywhere from
one to two months and that’s why it’s called the intermediate term line that’s
the green one the blue tends to uncover sediment anywhere from about one to four
weeks so less than right the green and that’s called the near term that’s going
to be the blue so think in terms of one to form weeks just kind of giving you
some general timeframes there and then the red that’s going to be called the
momentum think of the red as inside of a week and part of the way you can sort of
figure out you know the timeframes of the duration that these lines are
designed to track is to just take a look at how long it takes the line to go from
a very low level to a very high level right how long does that on average take
and when you’re talking about the Green Line that can go from low to high or be
bullish and stay bullish oftentimes anywhere from one to two months the blue
anywhere from one to four weeks ish and the red anywhere from well inside of a
week anywhere from like one two three ish days so those are the timeframes
that this is tracking now two things to know direction of these if they are
going down that’s bearish if they’re going up
that’s bullish for those timeframes okay and now note this sentiment has a
tendency to get to extremes those extremes are considered overbought
and oversold and that’s why I have these two areas here the one up in the red and
the one down in the green those are overbought that it would be above the
red and in the green oversold okay however one thing that most technicians
will agree on is that when these sentiment indicators are overbought or
oversold that doesn’t mean change not yet gate oftentimes traders will look
for the move out of the reversal zone basically or out of the overbought or
oversold area before they consider a change so Bay
basically let’s look at it right now today on the SPX the Green Line is
currently it’s going up okay it might be a little bit hard to see for you on your
screen there hopefully it’s not too bad but the Green Line is going up and it’s
above 80 so the Green Line is bullish and as long as it’s above 80 it’s still
bullish okay but it happens to be going up and above 80
so that might suggest in that 1 to 2 month timeframe bullish markets and
really when did this thing stop going down and start going back up again and
this isn’t always perfect I’m just kind of giving you some general timeframes
here but back here in October went up that’s bullish it stayed overbought and
is that entire time staying overbought basically that’s been a bullish
indication it did turn bearish right in there but quickly it’s reversed and it’s
gone back up and up into that upper reversal zone so it’s now bullish again
so that 1 to 3 month horizon basically bullish ish that makes sense based on
the sentiment now if we take a look at the shorter timeframes and some traders
will look for the shorter timeframes to help them with their sentiment based
timing in the near term right notice the blue is going down so that’s bearish for
anywhere from one to maybe four or five days there it’s kind of on the bearish
tone but notice the the red the momentum it was bearish and it still is bearish
but it’s down there in that lower reversal zone and it’s starting to head
back up again and just as a heads up that red line oftentimes doesn’t stay in
that lower reversal zone for very long now when you get agreement in these
lines you know they’re they’re kind of bifurcated right now Green’s bullish but
the short-term lines are kind of bearish there that might mean cautiously bullish
here is if that’s a thing I know that that’s tough to say but if all of these
start going back up again right the blue the red and the green they’re all
bullish that might be a better sentiment signal where
all timeframes are kind of an agreement there does that make sense but sentiment
is basically what this is gauging and right now this says essentially
intermediate term bullish based on really that rally that we had last week
and that rally especially the move up on Friday sort of fueled by enthusiasm from
the jobs report that was enough to push that green line back to the on Friday
anyway and also with the uncertainty that’s in the market that be occurring
some signals of larger change possibly occurring are number one clusters CL and
a cluster would be basically if you get all of these lines simultaneously
overbought or oversold so when all of these lines cluster together at the top
they’re all overbought or there are all oversold that could indicate larger
changes happening let’s see if we can identify a cluster there I’m gonna go
back to where it looks like maybe we had a bearish cluster and this doesn’t
always play out but it could be a reason for investors to maybe adjust their
opinion or maybe adjust their the way they’re allocating to existing markets
but just going back right there just putting my pointer I guess it would have
been 11:15 it looks like at that time and just so you know where I’m looking
here is I’m moving my pointer around I just hit the wrong thing there but where
I’m looking to get these readouts as I’m moving my pointer around are these
numbers right there they’re gonna change based on the day I’m pointing to all
right but anyhow right there we had a bearish sentiment cluster there where
the red was 89 that’s above 80 the blue was 87 that’s above 80 and the green was
97 that’s above 80 as well and so some traders might look at that as a bearish
sentiment signal and by the way that’s kind of when the market not saying this
always happens sometimes the market will just keep climbing but right about there
is when things started to get more volatile and uncertain so some traders
might use that as signal is the way as a way they might
react to markets right not saying it’s for everybody but some traders might
look at profit taking or maybe sizing down on a portfolio if
they get one of those bearish clusters and then on the other side though if
they get bullish clusters you know where all of those lines go to the bottom you
know a trader might consider you know maybe beefing up on their bullish
allocations so anyhow clusters that’s one now another signal here that
in you know I would encourage everybody to do you know if you like using
indicators like this to gauge sentiment really any indicator at all maybe just
take a look at historical performance write something for you to do as maybe a
homework assignment so you can work on a better understanding of this you know
take whatever your preferred indicator is in this case I’m going to use the
market forecast here and just look for previous examples where we’ve seen those
clusters right and this could be used on individual stocks or the broad market
I’m focusing on the broad market right now and just see what sorts of reaction
I you know have happened in the past and that way you can start to maybe build a
better understanding of it and some traders might even decide to integrate
that into their own investing plans okay but that’s one the cluster cluster above
80 that’s bearish cluster below 20 that’s
bullish tank change and oftentimes those clusters will happen right in the middle
of euphoria right bearish clusters often happen when everybody starts thinking oh
the market can’t possibly go down but the sentiment might be just a little bit
too extreme at that point on the other side when they’re down below 20 right oh
this market is terrible it’s never gonna go back up again you know the sky is
falling you know that might be an indication that the sentiments just
swung too far to the bearish side and again you got to stay with your plan
right but it could be just a heads up for those extreme levels of sentiment
within those few months worth of timeframes okay so now another signal I
want to talk to you about is what do you do in the circumstance where let’s say
the market have been bullish right and generally
the Green Line is going up let’s say an investor is looking for maybe short-term
timing you know where might we see some surges to the upside if that green line
is bullish and this works also if that green line is bearish but it’s called an
intermediate confirmation is what some traders will call this and that’s just
when basically the red goes oversold here here and you can see that these do
not always work sometimes the exact opposite will actually occur right but
if the green is giving us a statement right bullish and then the red gets into
the opposite extreme that could be a signal for a short-term rally okay so
back here we had green sentiment that’s bullish and then we had the red go into
this lower reversal zone and there’s a lot of these actually I don’t know why
I’m highlighting just that one right but there’s a lot of these that have
happened not quite that one right there but these are all what they call
intermediate kind of confirmations there’s one right there there’s one
right there we’re actually in one right now where
we’re Green is bullish and then the momentum is oversold intermediate
confirmation and again that’s just for those that are looking for maybe those
short-term spikes or reversals and sentiment that are kind of in the
direction of the underlying market sentiment line that makes sense
let’s see if we can just real quick I’m gonna go back in time this markets just
been so bullish I’m not sure where you’re gonna see some of the opposites
that are in here let me go let me adjust my timeframe we’ll go to a one-year Daly
and I’m just gonna look for times when yeah well kind of right here market has
been well now there’s a bunch of them really no there’s not hang on I’m just looking for a bearish version
of this where things are going down and they’re just there aren’t that many of
them I thought I saw one in there hang on I don’t want to spend too much time
on this because it might just be distracting but right here there’s one
and this one actually failed miserably but take a look at this right here right
back in time where this green line was actually bearish it’s in that oversold
zone and the red got all the way up there into that upper reversal zone that
would have been a bearish intermediate conformation it failed miserably but
that would have been a bearish one here’s one as well right green lines
going down and the red goes into that upper reversal zone so anyhow there’s
just a couple of signals to look at and right now we’re not well actually right
now on the broad market we are actually seeing one of those bullish intermediate
confirmations but still you know there’s some uncertainty going on in broad
markets okay if you like that type of an indicator again just try back testing it
now if you want let’s go ahead and see what some of the sectors are doing right
generally speaking the sector’s have had a bit of a pullback over the last couple
of days but if we take a look at for example let’s just I’m going to make
this graph so it’s not quite so big it’s kind of hard to see that way so we’ll go
back to a three-month graph here and we’ll hit okay here we’ve got staples by
the way staples have been one of the stronger sectors we’ve talked about this
a whole bunch the staples are actually right now you know on the sentiment if
someone is looking at that longer time frame they’re bullish okay and the red
line is below 20 some traders might view that as an intermediate confirmation
maybe a sign of strength that could happen on the horizon right just paying
attention to the sentiment that’s there of course trend traders might just look
at this and say yeah well okay we’re up trending so that uptrend also indicates
the same thing full that you’re not giving me any information there right
this is just it reminds me of this I went I went rock climbing for I used
to climb quite a bit but then I got too big to hold myself up and actually when
you’re rock climbing think with your feet is what we always say think with
your feet but my daughter lo and behold she decided to take up rock climbing and
she’s like dad come climbing with me so she and I went to an indoor gym last
week and it’s funny because it’s the first time I’d ever been to that gym
since they reformatted and there’s all kinds of climbing routes different holds
for different routes that people can climb up and they’re all rated and you
know based on different levels of aptitude and I said I want to see if I
can do a 5/10 still right I don’t know if you’re familiar with anyhow 5/10 it’s
kind of a beginner ish type of Route hey I’m just want to start easy right so I
go up to this wall and these hand holds that you know artificial hand holds that
are drilled into the wall those pockets they’re all different colors right and
they’re kind of going all over the place and I couldn’t figure out what an actual
route would be to take for a 5/10 do you just go up or what do you do but then I
realized right there’s a little sign on the wall and they’re actually
color-coded right if you want the 5/10 route you got to find the blue holds and
you go up those blue holes right that’s the 5/10 route it reminds me a little
bit of this market forecast right it’s not you know an absolute guarantee of
what’s gonna happen but based on the time frames that are there it might
suggest what route the sentiment is going for the different time frames
there so you’re just kind of matching up those time frames for the sentiment that
you like to track and some people will use these all together in concert but
anyhow you know combined it with what you’re already doing some traders would
look at this consumer staples and say yeah I know that that’s already bullish
there but let’s go through some of these others as well as we take a look at the
materials sector materials the green line going up the red line is oversold
that is also an intermediate conformation right
now some traders might look at this and say yeah but it’s going kind of sideways
yes that’s true but if we take a look at what’s been happening over the last
month or so we’re still kind of up trending there we have been in a
sideways holding pattern that green lines been going down in that holding
pattern this might be suggestion maybe reversal on the way but who knows you
know we don’t know for sure take a look at this one this is consumer
discretionary going fairly sideways but the grain started going back up and the
red is in that oversold zone and you know a lot of these are kind of in the
same circumstance here a lot of these are just kind of in the same
circumstance we got real estate it is going fairly sideways but the Green has
started going back up again taking a look at what have we got here
industrials green may be trying to move its way higher here sideways to moving
up and it does have one of those intermediate signals as well but I would
encourage everybody to kind of go through you know your own stocks or your
list of sectors and maybe maybe see if you can you know find some of these
signals if that seems like an attractive thing to you here we’ve got consumer or
skinny communications so the Facebook’s of the world the – you know the
Twitter’s the snapchats of the world communication based stocks also
technology is in there but momentum is in the oversold zone green line going up
so a bit of an intermediate confirmation there although the price action does
look a little bit more bullish than some of those others that we’ve looked at in
fact if we go down this list right outside of just looking at those market
forecast tools looks like really the there’s a few that are tending to be
stronger than than others right here for example financials they have seen some
strength they’ve sold off a bit but not as much as some of the other sectors
taking a look at this guy right here technology’s not too bad energy which
has been the underperformer energy starting to find some strength and I
guess that’s not a huge surprise because OPEC did make a
verbal commitment to output cuts and so that could get the price of oil moving
higher and so I guess it’s not too surprising to see energy starting to
move up here in fact I’m just kind of transitioning out of just looking at
these different sectors and one more I wanted to mention it looks like staples
have been pretty strong recently as well but we got staples financials oil is
gaining some strength on the sector and and healthcare is in there – where is
healthcare that’s financials hang on see if I can find the healthcare that’s in
there sorry that’s probably driving you’re bonkers where’s my healthcare
index though but health care was doing strong also and yeah right there health
care also very strong it’s kind of nice you can see that just by going through
those sectors but anyhow I don’t mean to digress or get away from this too much
but I don’t want to spend the entire session on this either but there’s the
market forecast you know for fun apply it to your sectors and if you want that
indicator modified the way I have created it feel free to check out the
Twitter and I’ll go ahead and tweet that out to the group again you can follow me
at em Follet underscore TDA also just as a heads up if you are gonna
be in the Dallas Texas area its Westlake I think what’s Lake or South Lake the
Mariette Solana this weekend I’ll be doing an advanced concepts workshop you
can actually still get registered for that class I don’t think it’s full and
even when it is full we usually still allow a couple of more seats coming in
there but you can if you’re interested it’s going to be advanced concepts you
know spread trading a lot of volatility analysis things like this but you can
actually get registered for that under the education tab just go to in-person
events there and get registered for that okay but speaking of energy just to
mention a few stocks dvn in the past week this has been one of the most
bullish stocks on Wall Street you know Devon energy and this is one of those
that has been kind of a laggard and still one could say that this has
some resistance in front of it but Devon energy very much tied to the price of
oil crude oil it has been I want to say it’s one of the top five stocks that
have reasonably sized capitalizations over this past week in terms of movement
so you know on the refining end in the energy group VLO
as a refiner I now because of crack spreads just kind of the margins for
refiners they have not been doing quite as well however sometimes you’ll see
cycles if the primary crude has been hot if that cools off a little bit sometimes
those refiners will start to heat up a little bit but anyhow VLO having to move
higher today within the energy although that’s very much a refiner and these are
names that we’ve talked about in this class a bunch of times but it is kind of
interesting looking at energy how it was not very good for a long time and it’s
starting to show a little bit more strength and how do you know you can
track that through the sector’s okay but now I’m gonna jump over here and I want
to look at an economic calculator or calendar just kind of shifting gears we
have been through using those sentiment indicators on the sector’s talking about
the what I call the market fork or the market maybe although it’s called the
market forecast but I want to circle back around and with the remaining time
I want to talk about things that are on the horizon that you as an investor
traders might want to be aware of in the news and let me grab some notes here
because I just I don’t want to forget anything because there are some things
on the horizon of course tomorrow that’s a biggie we’ve got interest rate policy
decision coming out tomorrow right the FOMC decision will be announced that’s
going to be at 2:00 Eastern Time and so that’ll be at noon in mountain time so
all three of you out there that are in the Mountain Time Zone anyhow I that’s
the way it’ll work and I’m going to bring up the /z and this is I and
actually know well look at this tyx this is the and that’s
not the one either let’s go to tnx this is the yield on ten-year Treasuries I
was I brought up the future initially sometimes the future doesn’t
speak to people it’s hard for them to visualize that so I’m just bringing up
the yield here but one thing that’s been sort of interesting over the past couple
of weeks or so interest rates have started to find a little bit of footing
again now granted there’s there’s some resistance on the horizon in terms of
these yields but it’s interesting that we have seen some strength coming in on
the interest rate front now that’s going to be the 10-year ten-year doesn’t
always do what the discount rate or what the Fed Funds rate is doing right this
is just gonna be kind of a proxy for you know real estate yields things like this
so kind of a midterm duration there but yields have actually worked their way
higher here now some people that are asking the question well why are we
seeing an up move and yields well especially we’ve seen this uptick in
yields as we have seen strength in terms of data at least the way the market has
interpreted the data from manufacturing from consumer sentiment and last week
the jobs report right but we are seeing a little bit of a tick up here in yields
and so it might be interesting to see how the market takes the Fed policy
result or the Fed policy announcement and see what these yields do and here’s
something that some traders might be thinking about right possibly I don’t
know for sure nobody does but possibly this is part of the reason why
volatility is picking up here part of the reason is maybe because of strength
in the economy right some traders are starting to price in higher interest
rates now not necessarily you know I think it’s pretty much agreed on that
the Fed is going to leave the Fed Funds rate unchanged tomorrow of course
there’s always surprise prizes but something that might be worth
watching is or even reading into right maybe even listening to the announcement
is some of the language used by j-pal in the sense that okay if they decide to
leave rates unchanged what is the tone about the future what is their tone
about economic conditions going forward and that might be something that traders
are a little bit cautious about right now and I’m not saying it’s a huge thing
but maybe that’s part of the reason why I volunteered our thinking or a little
bit worried that there might be a change in the path in terms of the current
direction of interest rates who knows right but that could be something that’s
going into the for a now a big thing as well that could be driving some
volatility this week is going to be well the the delayed deadline for the tariffs
the big one right on the toys and the electronics and a lot of those things
that are generally purchased more actively by American consumers and
companies the tariff delay that I want to say it was in September when the
delay started bringing how that delay on those tariffs is scheduled to come off
this Sunday the 15th and unless there’s been an announcement just recently I
don’t think there has been that could be part of the reason why we’re seeing
volatility go higher the market might be worried about the outcome there and that
is going to take place that 15th is on a Sunday so you won’t necessarily see it
unless you’re looking at the futures market but that’s a big one that you
might want to keep your eye on is any language revolving around that that
status of that tariff coming off because that could have a much bigger impact on
on American consumer prices okay now one other thing that traders might want to
have on the radar on the economic front it might be enough to drive volatility
especially if you’re putting this all into a blender especially on the
interest rate side to possibly justify a path of a little bit high
your interest rates is taking a look at the additional economic releases that
are scheduled to come out this week among the economic calendar right now on
TD Ameritrade just to remind you about how you can navigate there go to
research and ideas and under research and ideas that’s where you will find
calendar if you just click that it’ll take you to the calendar and you can hit
economic events from there it’s just kind of a nice easy to read economic
calendar on TD Ameritrade but if we click the 11th for example that’s going
to be tomorrow that’s where you’re gonna see all the upcoming you know data for
that given day FOMC rate decision that’s the biggie right that many investors are
watching but in addition to that CPI Consumer Price Index is there so far any
change on average to the prices that consumers are paying for their products
it’s an inflationary indicator some investors might watch that if core
prices start to pick up that could be fuel for additional volatility now who
knows it might not be but I especially if traders are worried that the tariff
delay might no longer be delayed in the tariffs go in that might drive even
higher prices which could potentially affect the economy also it could put the
Fed in a situation where if inflation gets too hot although that’s not really
a concern that might give them more reason to increase rates which might
actually lead to greater volatility in the future I’m just thinking about what
if scenarios of course we don’t know on Thursday though there’s another
inflation indicator coming out that’s going to be the PPI that’s going to be
the producing price or in or producing price index so basically what are
industries what are employers producers paying for their raw goods and materials
producer price index and then we’ve got a bunch of retail information coming out
retail sales coming out Friday that’ll be a biggie
about how especially during the Christmas season how the consumer is
actually holding up and you know consumers still have money in their
pocket so anyhow some big data this week the tariff situation the Fed is coming
up this week and also pricing information both consumer and producer
prices and all those things going into blender could definitely be enough to
cause some anxiety for investors so anyhow a lot of this stuff though gets
worked out fairly quickly but have it on your radar as these can
be things that can cause volatility all right I got a run I’m out of time just
to finalize this thing though where have we been today well we’ve been through
the market maybe market forecast indicator and I would encourage you to
maybe practice using some of those indicators to help you with timing and
also we got into what might cause moves in the upcoming week and so hopefully
that gave you a better understanding of what might drive volatility this week
but for now I got a run here are your final disclosures again look for the
tweet from me out there I’ll just go ahead and tweet you know just that
modified script and you can go ahead and apply that if you’re interested in that
indicator all right so there’s your final disclosures remember to like and
subscribe to the webcast well like it if you enjoyed the webcast if you didn’t I
don’t worry about it but go ahead and subscribe that way you can stay in touch
with these classes easier and anyhow maybe I’ll see you this week tomorrow
I’ll be doing a short-term option trading tomorrow morning right when the
market opens in our weeklies options class all right everybody you


Hi guys..This is Pooja from Welcome to our video channel on jobs and careers Today I will be talking about the career opportunities for MBA Entrepreneur Management Masters in business and administration in
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How does a spectrophotometer work?

Here’s how a spectrophotometer works. A
lamp provides the source of light. The beam of light strikes the diffraction grating,
which works like a prism and separates the light into its component wavelengths. The
grating is rotated so that only a specific wavelength of light reaches the exit slit.
Then the light interacts with the sample. From this point, the detector measures the
transmittance and absorbance of the sample. Transmittance refers to the amount of light
that passes completely through the sample and strikes the detector. Absorbance is a
measurement of light that is absorbed by the sample. The detector senses the light being
transmitted through the sample and converts this information into a digital display.

Jamaican Bud Business : Meet Medicanja

I was coming from West Vedic a few laganja fula ganja fula ganja driving so skilful minute i met no swerve trimet not swerve TriMet not sir Mota's may reach up a junction the vehicle a malfunction me say to myself what is this what Mia keep my composure no one comes for nuova so many watch I get panic becoming a fool ah Arabs pull our herbs and if them catch me lotta time Iago serve careful ah Arabs pull our hurts honey that gets me lotta time Iago serve she despite being synonymous for the culture of music of the island cannabis is not gonna legal in Jamaica for more than 100 years sanctions by the international community have prevented Jamaica legally cultivating and selling from the world's most potent natural cannabis in the 70s and 80s the American government went so far as to put a naval and aerial blockades around the island an attempt to stop the smuggling of cannabis it didn't work but with full-scale decriminalization happening Uruguay and US states like Colorado and Washington Jamaica is talking about legalizing it and that's a step that could potentially transform those tiny islands third world economy to something approaching a first world war in October 2013 member of parliament raymond price before demotion that renewed debate over legalizing cannabis in jamaica i moved a resolution in parliament which calls for the decriminalization of ganja for personal use for medical use as well as for religious purposes now long after mr. Pryce's motion new private company was listed on the jamaican stock exchange it was called medic engine professor henry law has taken to pay tens a lot of jamaica under all wives tales and cures I'm Henry Lowe the chief scientists and the executive chairman of the biotech R&D Institute as well as the recently launched Mary Concha company I was part of the team that developed the first product from ganja called Kennesaw way back in 1972 help to treat glaucoma I am from rural Jamaica I grew up in a household where I would often see my grandmother gone out to the bushes and come back with various slants and herbs for various remedies one of those was always ganja it was the colonial white ruling elites the first criminalized the plant despite it being used as traditional medicine and religious sacrament prior to their arrival on the island but now many establishment figures are increasingly speaking out against the draconian attitudes towards cannabis Jamaica is a party to several international conventions which limit the room for manoeuvre in relation to ganja I've been involved in campaigns for the legalization of ganja for many many years it's a cause which I promote principally for human rights implications I believe with the present laws are severely hostile to the basic rights of individuals to do what they please and surprisingly not everybody's on board with this new push towards legalization I can't support no form of rehabilitation because I am fully aware of the harmful effects when they THC acts on the cannabinoid receptors in the brain and affects perception because some persons to have a loosening Sun to fix some of the memories of X concentration it effects libido as well it causes infertility in some persons and I'm sure any Jamaican that you ask when they're in school guys will smoke in the class did not do any schoolwork there's clear evidence that it affects the development of the brain I believe that if it becomes more readily available that more persons will have music that is proprietary information at this time when I talk to you next year this time I'll tell you because the Jamaican habitat ideal conditions for growing cannabis the west coast of the island has always had lots of farms and export businesses all of which have been illegal it is done on steep hillsides trees are left and the canopy covers what would then be planted between the trees sometime we are favored on guys on that I finally as you know yeah god I've arrived in the outside are weird I know our secret this is the time when you don't know we are depending I get Marshall go start over again go for another fire to some Jamaicans the buying and selling of cannabis is an integral part of their economy especially in low-income neighborhoods such as Tivoli Gardens in Kingston like it was one leap and I don't die Nabila herbs just one idea and purchase we know compatible Colleoni families cope our loneliness what Angela burr Nahyan between January and July 2013 71% of Jamaicans committed in Kingston Magistrates Court but they're for simple cannabis possession you can still see every day a dozen two dozen people being who've been lifted off the streets today before kept in jail overnight charged with smoking a spliff or positioning of small quantity of ganja they get a small fine if they can't pay they go to jail for seven days they get a criminal record they can plaster pieces and that affects intergenerational wealth it affects the ability of the individual to advance in society this valley like twelve ten grand right mostly a gazelle-like unchecked bug and probably 200 bucks yeah to make backyard mone this is a big business we have so much marijuana and we are the wrong lava fight right no mean Stella festivities no police camp up in an order charge this a big charges Samir I don't know once you have a cancer conviction in the sense you're marked for life so people at a far lower jobs Creek right I know more than order my guitar so that's why more people are staring to marijuana as well as people who sell the plant for their livelihood there are also countless young Jamaicans to grow their own cannabis for personal use we are in undisclosed location looking over port more and in st. Andrew this earth they call it on Terra Rosa red dirt perfect place perfect place to go we have a whole lot of those who would see you willing to go find a somewhere deal to grow this and right now those kids are doing nothing they just walk the streets and fake blood of these youths with definitely take up farming just because of that are we going to regulate its persons will need to obtain license the goods and I'm not sure for many of them would actually be able to pay for those license but of all the voices around the new debate the most passionate come from the Rastafarians these devotees use cannabis daily and religious ceremony and see the plan a sacred degrading derogatory term to decry and despise the herbs even a barb itself telenet grasses for the cutter and herbs is for the use of man well this is Tomica nerves by Peter Tosh wooden doors and what Mar would love you know this is a peace pipe in the rest of foreign cultures call it chalice this is Jamaican coconut so when I leave the crown and give business to His Majesty the King scene then I bless and sanctify the name of jah rastafari lovely i refer to the conquering Lion of Judah in the name of Jah Rastafari turned him down Cielo the dew of Herman that stain upon the moons of Zion pop into jail Fergus a small job to a court of law the Tony was $200 son so it seems to iodine like America as a Nadine with this her as a big monumental industry team trying to penalize and sabotage or her it is among the best if not the best in the world they signed some documents down here to kill all the herbs so they sent in soldiers and so in in the West who signed documents me I wonder if I won on a minister from the Parliament Laura star about our sacrament well tell them Lauren natural plant are we element you like me you're puffing me herb say yeah evidence are you can take her we're mirrors on your feet charge of a negligence policeman your Fiat DS then when I see be heard manometer on tagging her skiers as far as like tourism goes for the country it would make go into California and the Netherlands like that's like the second and third stop but we have about Jamaica first profits can be made from the growing and selling of ganja I think the potential for Jamaica to market ganja to make money out of it you have tourists smoke it and come here and enjoy it quite apart from medical marijuana possibilities I think they're so enormous that we should go the whole hog as Uruguay is doing Jamaica has denied itself for several decades to be a part of evolution of the global Canada industry medical marijuana is it's over 2.6 billion u.s. dollars a year the time is ripe and I know it can make a tremendous difference to the economy of Jamaica

Biotechnology Industry Immersion Kick Off Jan. 12, 2018 – UC Davis Graduate School of Management

this is a great time in biotechnology it's a time where we're practicing precision medicine like we've never done it before so this is a great course because it combines MBA students and PhD students which really you need both of those kinds of functions to start a company and to be successful and this is a chance for them to see that this is a trillion-dollar investor and actually it started right here in our neighborhood my start was here in this neighborhood went to UC Davis as well and then I migrated out I brought some technology back and I'm able to take that technology and give them examples living case examples of what we're trying to do in Davis so benefits them because they get a chance to see how executives work

How to Invest in Biotech Stocks — Everything You Need to Know

Shannon Jones: Welcome to Industry Focus,
the show that dives into a different sector of the stock market every day. Today is Wednesday,
January the 23rd, and we're talking Healthcare. I’m your host, Shannon Jones and I am joined
via Skype by a special guest, contributor Brian Feroldi. Brian, finally, we get
to do a show together! I’m so excited! Brian Feroldi: This is exciting! Dylan has
pulled in for the Tech episodes a couple of times, but I've been looking
forward to getting in on Healthcare. Jones: For our listeners out there, I highly
encourage you to read Brian's coverage of the healthcare space. One of the things
I love about Brian, he comes with a background of about 10 years in the medical device industry,
and he has an eye for under-the-radar ideas. Our show today, I’m excited to have him
on because something we don't talk about enough is how to invest in biotech in safer ways.
For today's show, we're actually going to be covering three ways in particular that
are safer — I won't say completely low-risk — but maybe a little bit safer than the biotech
industry, one of the most volatile sectors in the stock market today.
Brian, I think it's safe to say, when it comes to biotech, you and I love it. It's probably
one of the more exciting industries. You have a constant churn of news and headlines.
Oftentimes, these are huge market-moving headlines that come out, whether it be a new trial read-out,
a drug finally finished the finish line for approval, no matter what, there's always a
plethora of news. But, in addition to all the good news, there's also a lot of bad news.
The land mines are aplenty when it comes to biotech. The risks don't just go through clinical development,
but they even extend into commercialization, as well. Brian, what is it about the biotech
industry that's so exciting, but also so scary at the same time?
Feroldi: Biotech is certainly not for the faint of heart. But if you just zoom out and
think about it from a 10,000-foot level, there's so much happening in the biotechnology
world for investors to get excited about. I mean, CRISPR, immunotherapies, CAR-Ts, RNAi,
there are a number of different segments within biotech that have so much promise,
and can really go on to not only treat but cure basically hundreds or even thousands of diseases as
they develop. That's a very exciting prospect for investors to get behind. 
If you combine that with the global population trends — the age of the average person that's
alive is getting older, which is a general push towards more and more spending on healthcare.
When you combine those two things, the future of the biotechnology industry in
general is looking incredibly bright. Jones: Absolutely! But, that comes
with a lot of risk. Part of that is just getting a drug through the very long clinical
development timeline. You're talking about Phase I all the way through Phase III, and then
even Phase IV, monitoring it after it comes to market. Brian, what can you tell us about some of the
approval rates as you go through that entire timeline? Feroldi: I think most investors know that it's very hard to get a drug from the lab
actually into the market, but to throw some stats behind it, about 70% of drugs that
enter Phase I will make it on to Phase II. That's a pretty good batting average right there.
But of those drugs, only about 33% of them will make it through Phase II. And then,
of those survivors, only about 30% of those will make it through Phase III. When you take it
through those steps, that means that less than 10% of the drugs that enter Phase III
will even find their way onto the market. So, the odds are heavily stacked against any
particular compound making it through. Jones: That's an excellent point. Actually,
BIO, the Biotech Industry Organization, the trade group, basically, they did a
multi-year study, I believe it was nine or 10 years where they looked at the likelihood of approval
across specific indications. You mentioned 10% being the benchmark, it's even lower for
some of the hottest areas in biotech right now. Thinking about neurology, which is really hot,
starting to become even hotter again, you're looking at an 8.4% likelihood of approval;
cardiovascular, you're looking at 6.6%; and all the way at the bottom of the barrel is
one of the indications I love the most, probably has dominated most of the headlines, and
that's oncology. The oncology indication, 5.1% likelihood of approval. So, you hit the nail right on
the head, Brian. The odds truly are stacked against many of these companies and many of
these drugs that are making their way through the pipeline. But that's
just the beginning. Even if you get a drug through all of those phases,
get it onto the market, Brian, you're still looking at hurdles when it comes to
commercialization. Talk to us a little bit about that. Feroldi: There are several of them. Some people
automatically assume, "If you get it through the FDA, it's nothing but smooth sailing from there."
But that's the start of a whole another set of problems. Once you get a drug onto
the market, the FDA gives it the thumbs up, you still have to get through payers.
Payers have to be willing to cover the drug, to offer it to their members and be willing to
pay for it. Then, you have to convince healthcare providers to actually be willing to prescribe
the drug. There's an expense with educating them and getting them on board. And then,
even after the fact, a lot of drugs require follow-on safety studies, that's called
Phase IV. There are ongoing clinical trials to make sure that the drug is safe and effective,
as it was shown in earlier trials. If a study comes up that shows that maybe it's not, maybe there's
an additional risk that wasn't uncovered earlier, there's a chance that
drug can come off the market. When you compile those onto the low, low odds
of just getting a drug through in the first place, you can understand why, for a drug to truly
become a success in the market, it's incredibly rare. Jones: Yeah. The odds
are definitely stacked against the average biopharma company.
But let's talk about us as Average Joe investors, Brian. For people like you and me who want
to play in the biotech space, but don't necessarily want to take on all of that risk by investing and chasing
some of these one hit wonder biotech companies, what's a good way to actually
jump into it that's also safe? Feroldi: There are a couple of strategies
that individual investors could take to lower their individual risk. The first and probably
the easiest for them to do is to get their biotech exposure by using exchange
traded funds, more commonly known as ETFs. These are funds that individual investors can buy,
and when they do so, they can gain instant access to dozens or even hundreds of individual
biotech stocks. What that does is, it spreads their money out across dozens or hundreds
of holdings, basically in an instant. That greatly increases the odds that those few
huge winners that will emerge in the biotech sector will be in your portfolio.
Jones: With ETFs, you're getting a basket of securities. You can buy and sell them through
your brokerage, much like an individual stock. It gives you the flexibility and also helps minimize
some of the risk. Brian, you've got two ETFs, two that we actually talk about a lot on
Industry Focus, especially when we're benchmarking returns for a particular company, or even
just trying to gauge investor sentiment and how people are feeling about biotech. Let's start
with the first one, the NASDAQ Biotech ETF, also known as the IBB.
Feroldi: This is the biggest and the most popular ETF that's focused on biotechnology
on the market. It holds more than 200 companies in it. It actually has a focus on the biggest
stocks in biotechnology — Biogen, Celgene, Amgen and Gilead are the four biggest ones,
and this fund has a heavy concentration in the big names. Because of that concentration,
it actually comes with a dividend yield of 0.2%. Admittedly, that isn't much. But, considering
you're talking about the biotechnology industry, it's actually pretty remarkable.
Even though it has a concentration on the biggest names, this is a fund that has performed
very well for investors. Over the last decade, the IBB is up 370%. For comparison,
the S&P 500 is up 286%. This a single fund that has a decade-long history of outperforming.
Jones: Just to give our listeners some idea in terms of exposure, you've got, of course,
the big biotechs that you mentioned — Biogen, Celgene, Amgen and Gilead — but you've also
got exposure to pharmaceuticals. Just looking at the fund itself as of today, in terms of
exposure, you've got 80% in biotech, you've got about 9% in pharmaceuticals,
and looks like about 8% in the life sciences, tools, and services. So, in terms of spreading out
that exposure across multiple sectors, in terms of diversification, this one is
probably the most popular for that reason. Let's turn our attention, because the other
ETF that you mentioned is one that is not as widespread, but for those that are looking
for more concentrated biotech exposure, this could actually be one that is a good idea
to invest in. It's the SPDR S&P Biotech ETF, also known as the XBI.
Feroldi: This is a fund that I personally happen to like a lot. Like the IBB, it's spread out.
This one has 120 individual holdings in it. It's very well-diversified. However,
what differentiates this fund is that it takes an equal-weight approach to its indexing,
as opposed to the NASDAQ Biotech ETF, which takes a market-weight. What that means is,
the 120 holdings that are in this fund, the percentage of the fund that is in each individual
holding is exactly the same across the board. And this rebalances itself. What that does
is gives stockholders much more exposure to the small stocks. A couple of them that are
in there, for example, are Portola Pharmaceuticals, Neurocrine Biosciences, bluebird bio.
You have the exact same exposure to those small ones as you would to the larger ones.
If you're the type of investor that's looking for a little bit more upside potential and you want
to have a bigger concentration in the small stocks, which can put up huge percentage gains
if they work out, the XPI gives you a little bit more exposure to that.
Jones: For the brand-new investor, Brian, who's thinking, "This sounds like a very compelling
investment opportunity," what's the downside? What am I not getting when I invest in
ETFs that I could be getting from stocks? Feroldi: Like anything, you do give up a little
something when you invest in ETFs. With ETFs in particular, you do have an expense ratio
that you have to pay that you wouldn't have to pay if you owned individual stocks.
To put some numbers on that, the IBB has an expense ratio of 0.47%. The XPI is a little bit lower
at 0.35%. So, you have a small fee that you have to hold these exchange traded funds over
the course of a year. I think that's a pretty modest thing that you have to give up
in exchange for the broad exposure. The bigger disadvantage is that diversification
cuts both ways. Because you're owning so many stocks, you're guaranteed to hold a lot of
companies that are probably going to lose, and they're going to lose badly. Whereas if
you were picking individual stocks, and you were really good at it, you might be able
to get a higher concentration of the winners. You're trading risk, in this case, for that reward.
And because these funds have both done so well over the last decade, they've both
outperformed the S&P 500, I think that's a trade-off that’s worth making.
Jones: Very well said, Brian! Let's talk about another safer way to invest in biotech and
biopharma. That way is interesting because in an effort to curb costs and expedite R&D,
many biotechs are now starting to outsource many of their clinical functions. This goes
to a class of providers better-known as the contract research organizations, or CROs,
as they're called. Brian, what makes CROs so attractive as investment
opportunities right now? Feroldi: As I’m sure many biotech investors
know, getting a drug through the regulatory approval process and conducting those
clinical trials not only takes a long time but it's extremely expensive. That means they're going
to be spending heavily on clinical trials. The advantage of buying a CRO is that they're
the ones that are directly benefiting from that spending. They're also directly
benefiting from that long lead time. CROs partner with biotech companies,
pharma companies and they handle all facets of the clinical trial process. They can literally
design the trial, get in contact with clinics to actually perform the trial, they can run
the tests, they can analyze the data, they can help with the regulatory submission.
If a company wants to outsource that work, or even just partner to get consulting advice,
CROs are a natural go-to partner for them. The great thing for investors is that the
CRO makes money on the drug basically no matter what the outcome is. If a drug fails to live
up to its expectations, the CRO still gets paid for conducting a trial. Another nice
benefit is, when a drug enters Phase I, by the time it gets through Phase III, that process
can take many years. If you partner with a CRO on Phase I and you have to take it through
all the way to Phase III, well, those trials have to be conducted over a course of years.
You typically sign contract agreements with the CRO that last multiple years and multiple
phases. If a CRO wins a compound early in its life cycle, they get a lot of revenue visibility
as the drug develops. That's very attractive. Jones: Yeah.
Interestingly enough, right now, only about 40% of clinical development is
currently outsourced. Some analysts are saying this could rise above 50% over the next few years.
A couple of reasons why, a couple of drivers, one is just the cost of running these
expensive, massive trials. Those are going to continue to grow, especially as many
biopharma companies are continuing to expand and run trials on a global basis. You've also got
very complex regulations. In some cases, the FDA is starting to back off in some ways
and make it less complex, but in other ways, in other areas, like gene therapies,
those are going to be the more complex routes that many of these
biopharmas will have to tackle. They'll need a partner like
a CRO to help get them through. In addition, another huge
driver is insurance reimbursement. We've seen and will continue
to see, especially as we get through the next election cycle, continued pressure on drug
pricing. You're seeing payers push back, you're seeing politicians get more involved in
the mix. Maybe, maybe not, we'll actually see something happen when it comes to drug pricing.
Either way, all of this amounts to continued downward pressure on margins for many
of these large biopharma companies. Biotechs, especially the smaller ones,
need the expertise, they need the cost efficiencies, and really, they need the global reach that
many of the CROs offer. Brian, are there any names in particular that
stand out to you in the CRO space? Feroldi: There's a handful of them that are
publicly traded. My personal favorite is the largest one in the sector, which is called IQVIA Holdings.
This is a company with 55,000 employees. It literally services 8,000 different
customers. They handle soup to nuts, from basically discovery
all the way through commercialization. If a biotech needs help with anything, they can get that basically from IQVIA.
So, not only do they have resources, a huge army of researchers and regulatory experts in multiple
countries that they can use, but IQVIA actually owns a database that has 530 million patient
records in it, and they can use that to analyze prescribing habits, that can help sales reps
with doctor targeting after a drug gets approval to make the commercialization
process as easy as possible. To give some scale, this company currently
has a backlog of future projects worth $60.4 billion. These guys are absolutely enormous.
Jones: I love their focus and their push on the data end. You can see that playing
out in so many different ways. You have access to clinical trial data once a drug is on the
market. They also have a database that's looking at prescribing trends. I really think it equips
the salesforce with better data to go after markets to drive top line for this company.
Also, they're expanding globally. I know they've recently been expanding into the
Asia Pacific markets. Really interesting there. There are some other companies in this space,
as well. Any others come to mind? Feroldi: There's a couple of smaller ones.
IQVIA is definitely the big dog in the area, but there are a handful of other CROs that
take more niche focuses. Because they're smaller, they tend to be growing quicker.
A couple for investors to put on their radar, one's called PRA Health Sciences. Their ticker
symbol is PRAH. Then, there's Syneos Health, which is the sponsor of the show. Their tocker is SYNH.
Then, there's another one called ICON plc. Their ticker is ICLR. All these companies
have their own niches within the industry. Since they're smaller, if you want to ride
the wave, perhaps they could be more interesting to look at because they could post
faster growth on a percentage basis. Jones: Yeah. That's a great point on the smaller
companies. What we've seen over the past few years in the CRO space is a lot of M&A action.
I think that's set to continue. If you think about it strategically, it makes a lot of
sense. Obviously, together, not only can they combine and leverage a much wider network
of clinical trial sites, they can also now expand their clinical trial participant pools
and start to utilize the big data and the AI tools that many of them are going after.
So, it wouldn't surprise me to see more M&A heading in the next
few years in this space, as well. Let's talk about our third and final way to
play it safe when it comes to biotechs, Brian, and that's with picks and shovels providers.
Brian, what in the world is a pick and shovel? Feroldi: That's a that's a fun investor way
of saying, if you want to play a trend, one of the safer ways to do it is to buy the suppliers
to that industry. Let me give you an example. There's a company called
West Pharmaceutical Services. What they do is, they're a leading provider of components and systems
that make drugs injectable. They provide vials, syringes, pens, stoppers, safety devices on the actual
drugs themselves. If you have a thesis that the number of drugs that are available are
going to grow and the number of people using them is going to grow, that naturally leads
to more demand for the injectable products, the actual things that get the drug into
your body — the vials themselves, the packaging. All of those things are actually handled by
West Pharmaceutical. These guys are one of the top-tier suppliers to the industry.
In fact, about the top 75 biotech injectable products on the market actually come from West.
This is a company that has no risk of any particular drug not going well.
They're a steady-eddy business, and they've produced fantastic returns for shareholders over the
last 10 years. They're actually up about 520%. That's a return that just smashes the index. 
Jones: That's incredible returns for a company you don't hear a lot about. I did some research,
this company has actually been around since the 1920s, which is very surprising to me. When you're
in the position of being a biopharma company, you want that long-term expertise,
that experience on the regulatory front, and even more so when it comes to the delivery
components. Sometimes, getting that right — both from a manufacturing and a compliance
and regulatory perspective — is just as important as getting the drug itself through to approval.
So, this company in particular, don't see it going away anytime soon. They supply pharmaceutical
companies, they supply the biotech companies, even generic medical device companies,
as well. They're massive. They've got over 50 locations, 28 facilities across the globe.
This is one I’m certainly going to be watching, Brian. Let's talk about the
second picks and shovels play on your list, a company that I pretty
much consider a good Fool favorite around here. Feroldi: Veeva Systems
should be a name that sounds familiar to a lot of longtime listeners.
This a company that provides cloud-based software that's specifically made for the life sciences industry.
Veeva Systems provides software that helps companies to manage their clinical
trial data, manage customer relationships before and after the sale, can help with regulatory
compliance. This a company that has taken an extreme niche focus on the life science
industry. Because of that, because of their tailored needs, they've really made a name
for themselves. In fact, today, they currently boast more than 600 customers, which includes
some of the biggest names in the industry, like GlaxoSmithKline, AstraZeneca,
Biogen, Lilly, Novartis, etc. All of them rely on Veeva Systems' tools to help
them with the clinical trial process. Because of their niche focus, and because
they've been able to grow so rapidly in the industry, this a company that's put up great
returns for investors. They just IPO-ed in 2014, so we don't have an incredible amount
of data to look at, but investors who got in at the IPO are already up 177%
because this company is growing so rapidly. Jones: Another thing I love about the Veeva
story is the CEO. He was actually a former executive from Salesforce. He recognized that
for the pharmaceutical industry, they didn't have a cloud-based offering that
could fit the needs of the industry itself. So, there you have it, here comes Veeva.
Veeva has a number of different products. In particular, they started off with a CRM,
customer relationship management, tool built for big pharma specifically. But really, the big money maker has been
Veeva Vault. That's helping companies manage all of the data that's needed
to track and analyze clinical trials. What I love about the Veeva platform
is that with all these multiple products, they're all connected. As you're a biopharma company,
you've got really high switching costs to come off of that one platform to go to another.
I love the fact that they've got such a wide moat here. I think Veeva in and of itself
is in a league of its own, and it's even expanding beyond biopharma. It's working now with companies
in the consumer goods industry, manufacturing, even the chemical industry.
Huge, huge growth ahead for Veeva. Brian, let's turn our attention to the last
picks and shovels play, one that I had not followed as much. But after doing some digging,
this one certainly piqued my interest. Feroldi: The final company today is called
Repligen. Its ticker is RGEN. These guys make proteins and filtration technology that enable
the drugs themselves to actually be manufactured. When you're making a drug, you need active
ingredients. Repligen helps drug companies to actually make the equipment and provides
the proteins that go into the drugs themselves. These guys have literally a 95% market share
in making proteins that are used to make vaccines and are used in gene therapy. They've grown
right alongside with the general demand in the biotech market. In fact, this one of the
best-performing stocks over the last decade. Their stock is up 1,320% over the last 10 years.
Again, because they don't care specifically about any particular drug making it through,
and because they're very well-diversified amongst a lot of customers, they can ride
the general wave of growth in biotech. Jones: Absolutely. When you consider that
the equipment that they make is needed to purify biologics, and just how crucial that is —
if you think about it, biologics themselves are products that are made from living cells.
They're very large, very complex. After they're produced, though, you have to purify the product.
This is really where Repligen stands out in terms of lowering the cost. Purification in
and of itself is a very cost-intensive step, and one of the riskiest, too,
when it comes to biologics manufacturing. Speaking of biologics, there are currently
over 1,000 biologics been studied for development. The growth runway on this stock is tremendous.
That's across the globe. Also, interestingly enough, oncology is actually the leading therapeutic
area with the maximum number of biologics under development right now. A lot to watch
here on this particular company, especially as biologics are expected to hit over $300
billion by next year. It's a massive market. All in all, Repligen is a great way for investors to ride the
wave safely when it comes to biologics development, both on the development front
and post-commercialization. Brian, we've talked about a number of different ways,
given a handful of stocks to play for biotech. If I had to sum up today's show,
all in all, investors should know and should be aware of how to structure their portfolios
when it comes to playing safely in biotech. Are there any final thoughts that you
want our investors to leave today with? Feroldi: I would just say there's no need
to over-concentrate in any given company. There's a number of steps that you can take
to de-risk your portfolio. It's always very exciting to get your hands on a small biotech
that promises through-the-moon growth. When you actually look back at the number of failures
that are out there, the odds are stacked against you. It can make sense to take a portion of
your biotech portfolio and play a little safer. Jones: Wise, wise words there, Brian!
Thanks so much! And thank you so much for tuning in! That'll do it for this week's Industry
Focus: Healthcare show. As always, people on the program may have interest in the
stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't
buy or sell stocks based solely on what you hear. This show is produced by Austin
Morgan. For Brian Feroldi, I'm Shannon Jones. Thanks for listening and Fool on!