Editor’s note: This article is part of InvestorPlace.com’s Best Stocks for 2020 contest. Matt McCall’s pick for the contest is Aimmune Therapeutics (NASDAQ:AIMT).
On Aug. 1, 2018, Southwest Airlines (NYSE:LUV) stopped serving a long-time favorite on board its flights — peanuts.
Southwest isn’t the only airline to make this change. United Airlines (NASDAQ:UAL) and JetBlue Airways (NASDAQ:JBLU) don’t serve peanuts. Neither does Delta Air Lines (NYSE:DAL), as long as passengers with allergies notify the carrier at least 48 hours prior to their flight.
American Airlines (NASDAQ:AAL) doesn’t pass out peanuts either, and as of December 2018, passengers with allergies can actually board their flights early to wipe down their seats.
Airlines began making these concessions because peanut allergies can be severe. Some sufferers can’t even be in the vicinity of a peanut. And as we all know, airplanes don’t typically have the best airflow.
According to the U.S. Food and Drug Administration, severe allergic reactions to food cause 150 deaths each year in the United States — and as many as 2,000 hospitalizations. So airlines acknowledging the risk to passengers with allergies is a huge step in the right direction.
While allergies change as we grow, there is a huge lack of attention to severe food allergies in the pharmaceutical world. There are currently no FDA-approved preventative treatments for peanut allergies. Only reactionary ones. And that’s a major concern for those who have to worry about potentially dire consequences on a daily basis.
That brings me to my pick in the Best Stocks for 2020 contest. It’s called Aimmune Therapeutics (NASDAQ:AIMT), and it’s a leading biopharmaceutical company that focuses specifically on the unmet needs of people who suffer from food allergies.
The Year of Biotech
Among the other “hypertrends” predicted by myself and Louis Navellier, 2020 could easily go down as The Year of Biotech.
There are so many factors that go into that. For example, next year marks the 20th anniversary of the sequencing of the first human genome, and we’re seeing tremendous advancements in gene therapies. We’re also seeing growing earnings and stronger stock performance of the best plays in this dynamic sector.
I expect this broad strength to play a role in Aimmune’s potential next year.
Aimmune is a cool story. It was founded in 2012 by a group of parents, advocates, researchers and FDA members who were frustrated with the lack of focus on severe food allergies. Their goal was to turn oral immunotherapy — which delivers treatment via the gastrointestinal tract — into a clinically validated, FDA-approved treatment.
According to research, orally administered allergy treatments allow people to build a tolerance against accidental exposure — like being on a plane where peanuts are being served. In other words … the industry’s first preventative treatment for food allergies.
And so, Aimmune and its Characterized Oral Desensitization Immunotherapy (CODIT) platform were born.
The company’s lead drug candidate is AR101 — or Palforzia. It’s a treatment for peanut allergies, and it’s currently undergoing Phase 3 trials. In September, the FDA’s Allergenic Products Advisory Committee voted 7-2 in favor of Palforzia’s use in children and teens.
Typically the FDA will go along with such an endorsement, so this a great sign for its future. The drug could be approved as early as next month.
Aimmune also submitted a marketing application for Palforzia to the European Medical Agency (Europe’s version of the FDA). A decision is expected in the second half of 2020.
A BIG Upcoming Year
Approximately 15 million across the United States and Europe are affected by food allergies, making it a massive $24 billion industry. Peanut allergies account for $3 billion of that market.
That puts Aimmune in an enviable position. With approval for Palforzia expected in the relative near term, it could be set up for a huge windfall.
Today, Aimmune is a tiny $2 billion company. It generated $0 in revenue in 2019, but 2020 is shaping up to be significantly stronger.
Wall Street currently expects the company to generate $55 million in revenue next year and then grow that figure 270% in 2021 to $205 million. That’s extremely strong growth in just a couple of years — especially for a company in the very beginning stages of life.
It’s also worth keeping in mind that the above estimate only accounts for the potential in treating peanut allergies. But Aimmune has other drugs in its pipeline related to the treatment of egg and walnut allergies, two other potentially big markets.
The stage is set for Aimmune. Its potential in tackling the unmet needs of allergy sufferers is nearly endless, and 2020 will only be the beginning.
But that’s not all.
Louis Navellier and myself have teamed up to create the “Power Portfolio” — a list of our “guaranteed” stock picks for 2020!
Between Louis and myself, we’ve managed to create a list of power players. These stocks all have the same dynamic characteristics:
- They’re small stocks that haven’t been discovered by the mainstream media.
- They’re growing at impossible speeds.
- They’re all in unique industries with exorbitant growth potential
Beyond that, you can hear myself and Louis talk with Lauren Sivan about these stocks’ enormous wealth-building potential here.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and+1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.