Plan B Investing

Written by Luke Burgess
Posted August 15, 2018 at 4:35PM

I want to talk with you today about a very sensitive topic in America right now: abortion.

Before I even begin, I want to assure you that this is neither a pro-life nor a pro-choice argument. I will not be putting forth any effort to support or condemn either side.

Instead, my goal here today is to explore overlooked investment opportunities in an ever-changing political environment. I am simply stepping back from the trees to examine the forest.

Again, I promise you I am not trying to persuade you about abortion one way or another. I am trying to make you money.

With President Trump’s appointment of new Supreme Court Justice Brett Kavanaugh, many Americans believe Roe v. Wade will be challenged and possibly overturned. The Boston Globe reports, “Make no mistake — Kavanaugh will vote to overturn Roe. He may not say so directly during the confirmation process, but his writings and his legal opinions speak clearly enough, if you can read between the lines of judicial code.”

The rising debate surrounding the 1973 ruling is reflected in a sharp increase of Google searches of “Roe vs Wade.” Google Trends shows a 2,400% increase between the end of June and mid-July.

There’s no doubt that the abortion debate is a hot topic right now. And if the court does not challenge Roe v. Wade, nothing changes. But if SCOTUS does challenge the ruling (even if it’s not ultimately overturned), there are opportunities to profit. And among those opportunities is one that is seemingly overlooked: emergency contraceptives.

Better known as the “morning-after pill,” emergency contraceptives are birth control measures that are used after sexual intercourse to prevent pregnancy.

These morning-after pills have a pretty long shelf life — some up to four years. And if Roe v. Wade is challenged by SCOTUS, women could begin stocking up on these pills ahead of a decision. That could mean a sharp uptick in sales of emergency contraceptive pills and increasing revenue for manufacturers.

Fact is, there is precedent for such a run in sales. Leading up to Trump taking office, many women stockpiled emergency contraception. The Huffington Post reported on January 19, 2017:

Women Are Stocking Up on the Morning-After Pill Before Trump Takes Office

After making calls to several different pharmacies, I learned that the most popular over-the-counter emergency contraception brand is Plan B One-Step.

The Plan B brand was originally developed by Israeli-based firm Teva Pharmaceutical Industries (NYSE: TEVA). But in 2017 the brand was sold to a private Pennsylvania company, Foundation Consumer Healthcare, LLC, for $675 million.

Unfortunately, Foundation Consumer Healthcare is still a private company. So retail investors can’t buy stock shares directly. However, Foundation Consumer Healthcare is backed by two major private equity firms. So it is possible to invest in emergency contraception.

One of those private equity firms is Juggernaut Capital Partners. (Disclaimer: I personally have no direct or indirect connection to Juggernaut Capital Partners.)

Of course, private equity investing is not easily accessible to the average retail investor. Many private equity firms are looking to target institutional investors and very wealthy individuals. Most typically seek investors who can commit millions of dollars. And I don’t know Juggernaut’s capital requirements.

Still, for some, there could be a major opportunity to invest in emergency contraception. As the debate over abortion continues to heat up, the fear of overturning Roe v. Wade could very well spur sales of emergency contraception. And that could mean big profits for today’s investors.

Good investing,

Luke Burgess Signature

Luke Burgess
Contributing Editor, Park Avenue Digest

follow basic@Lukemburgess

As an editor at Energy and Capital, Luke’s analysis and market research reach hundreds of thousands of investors every day. Luke is also a contributing editor of Angel Publishing’s Bubble and Bust Report newsletter. There, he helps investors in leveraging the future supply-demand imbalance that he believes could be key to a cyclical upswing in the hard asset markets.

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