Mad Hedge Biotech and Healthcare Letter
May 16, 2023
Fiat Lux
Featured Trade:
(FROM PANDEMIC HERO TO UNDERRATED STOCK STAR)
(PFE), (BNTX), (JNJ), (LLY), (MRK), (ABBV), (BMY), (AMGN), (GILD)
Posts
For investors grappling with the classic dilemma of whether to jump into the stock market or wait for a market dip, here’s a compelling solution: healthcare stocks.
These stocks offer the best of both worlds, combining elements of both defensive and growth investments, providing a potential way out of this conundrum.
The defensive nature of healthcare stocks was vividly displayed in 2022, when the Health Care Select Sector SPDR exchange-traded fund (XLV) only saw a minimal decline of 2.1%, significantly outperforming the broader market's 18% slump.
This resilience stems from a simple truth: regardless of economic conditions, people will always require medical care and medications. As a result, healthcare companies tend to experience less volatility in terms of revenue and earnings compared to the overall market.
However, this year has been a different story. Technology and communication services shares have taken the lead, causing healthcare stocks to dip by 2.3%. Meanwhile, the S&P 500 has surged by 8.4% as investors view healthcare as a defensive sector.
Nonetheless, don't overlook the significant growth potential in this sector. In fact, healthcare has consistently delivered an average annual earnings growth rate of 12% since the mid-1980s, surpassing even the tech sector.
This impressive growth has been driven by factors such as aging populations in developed countries, the rising affluence of consumers in emerging markets, and groundbreaking advancements in the treatment of previously incurable conditions.
Interestingly, the recent decline in healthcare stocks has made their valuations more attractive. Currently, healthcare trades at a 5% discount compared to the broader S&P 500, whereas historically it has commanded a premium of around 11%.
Considering this, it's evident that the fundamental outlook for healthcare remains promising, making it an enticing opportunity for investors.
In the realm of defensive downside protection combined with compelling long-term growth prospects, a few notable companies shine brightly.
One standout is Pfizer (PFE), the pharmaceutical titan that truly hit it out of the park during the tumultuous COVID-19 pandemic.
Not only did it swiftly develop and commercialize its highly successful vaccine in collaboration with BioNTech (BNTX), but it also demonstrated an innovative approach that can be leveraged for future drug and vaccine advancements.
The COVID-19 vaccine proved to be an extraordinary cash cow for Pfizer, catapulting their revenue in 2021 and 2022 to double the figures of the previous two years.
Meanwhile, their free cash flow nearly tripled, presenting the company with abundant financial opportunities.
When we examine Pfizer in comparison to its US Big Pharma counterparts like Johnson & Johnson (JNJ), Eli Lilly (LLY), Merck & Co (MRK), AbbVie (ABBV), Bristol Myers Squibb (BMY), Amgen (AMGN), and Gilead Sciences (GILD), though, it becomes evident that this stock is appearing significantly undervalued across various metrics.
A fascinating observation emerges when we consider that Pfizer's revenue in 2022 was 3.5 times higher than that of Eli Lilly, yet Pfizer's market capitalization is $150 billion lower than Lilly's.
Furthermore, Pfizer surpassed Merck and AbbVie in revenue by nearly 2 times while achieving a substantially higher profit margin.
Still, Pfizer's market capitalization of $220 billion is nearly $50 billion lower than AbbVie's and approximately $70 billion lower than Merck's.
These comparisons suggest that Pfizer's stock price is curiously undervalued, presenting an opportunity for growth. However, the market has arrived at a different conclusion.
The rationale behind this perspective lies in the belief that the additional revenues generated by Pfizer through Paxlovid and Comirnaty due to the COVID-19 pandemic are not expected to be a permanent fixture.
As fewer individuals receive COVID vaccinations and require antiviral treatments, the demand for these products is predicted to decrease significantly. Consequently, this perceived compromise in Pfizer's growth trajectory has influenced its valuation in the market.
Moreover, several moneymaking drugs are set to lose patent exclusivity, which again underlines why analysts and the market are reluctant to buy the company's stock.
Rather than opting for a special dividend or engaging in additional stock buybacks, Pfizer's management embarked on an impressive acquisition spree, replenishing the company's drug development pipeline.
Pfizer has been making major moves in the pharmaceutical industry since mid-2021.
In a series of high-profile acquisitions, the company has added some promising drug candidates to its already impressive portfolio. In fact, Pfizer is aiming to generate $20 billion in revenues from its product pipeline by 2030, while adding another $25 billion to the top line through business development.
Some of the notable deals completed by Pfizer include the $2.3 billion acquisition of Trillium Therapeutics, which brought in two CD-47 targeting blood cancer drug candidates.
The company also acquired Arena Pharmaceuticals for $7 billion, gaining access to its late-stage autoimmune candidate Etrasimod.
It then completed an $11.6 billion deal for Biohaven and its lead candidate Nurtec, which is indicated for migraine treatment.
Global Blood Therapeutics was acquired for $5.4 billion, adding the commercial-stage drug Oxbryta to Pfizer's portfolio, which is indicated for sickle cell disease.
Pfizer acquired Reviral for $525 million and gained access to its antiviral therapeutics targeting the respiratory syncytial virus.
In March, Pfizer made another bold move by announcing its intention to acquire Seagen for $43 billion. Seagen is a pioneer in the antibody-drug conjugate space, with a portfolio that includes ADCETRIS, TIVDAK, and PADCEV. These drugs earned $839 million, $451 million, and $63 million, respectively, in 2022.
Despite all these acquisitions and the ambitious revenue targets set by Pfizer, some analysts have expressed doubts about the company's ability to achieve its goals.
This is because Pfizer does not currently have any "mega-blockbuster" drugs in its portfolio, which are drugs that generate more than $15 billion in annual sales.
For instance, Merck's Keytruda and Lilly's Tirzepatide are both expected to generate more than $25 billion in annual sales, while AbbVie's Humira has generated more than $15 billion in annual sales for many years.
Nonetheless, Pfizer remains optimistic and is determined to reach its revenue targets by 2030.
Aside from the splashy acquisitions, Pfizer has exciting prospects on the horizon, promising accelerated revenue growth from its non-COVID products in the latter half of this year. The company is gearing up for a series of key product launches that are set to make waves in the market.
One notable launch is Cibinqo, a breakthrough treatment for eczema. With its approval in January, Pfizer anticipates peak sales of approximately $3 billion.
Later in the year, the company has high hopes for Ritlecitinib, a potential therapy for alopecia, as well as Zavzpret, a migraine therapy that gained approval in March. These innovative products are poised to capture significant market share.
Pfizer's portfolio expansion doesn't stop there.
It has set its sights set on Elranatamab, a promising blood cancer therapy projected to reach peak annual sales of $4 billion.
Additionally, the company plans to introduce a new RSV vaccine and pursue label expansions for Xtandi and Braftovi.
Let's also not forget the potential approval for Etrasimod, a blockbuster-in-waiting that could revolutionize the industry.
Overall, Pfizer emerges as a compelling investment opportunity, presenting a unique blend of defensive strength and promising growth potential, while its valuation remains attractive and aligned with historical levels. While it may require a measure of patience, it's crucial to recognize that this stock won't stay affordable forever. I suggest you buy the dip.
Mad Hedge Biotech and Healthcare Letter
May 11, 2023
Fiat Lux
Featured Trade:
(UNLEASHING GENOMIC SUPERPOWERS)
(TMO), (PFE)
In a world where the longing for personalized cancer treatments echoes the craving of superheroes for justice, Thermo Fisher Scientific (PFE) and Pfizer (PFE) have forged an alliance to expand the global reach of next-generation sequencing technologies.
Their ambitious mission? To bring a ray of hope to patients by advancing a more accurate technology that can be used against cancer.
Cancer treatment is evolving at lightning speed, shaking up the status quo and dazzling experts worldwide. In the past, most treatment options revolved around traditional approaches like radiation. But now, a new kid on the block is changing the landscape: genomics.
Genomics might sound like a fancy scientific term, but it's a captivating branch of molecular biology that holds the key to unlocking the secrets deep within our genes. By studying our genetic profile, we can diagnose cancer more precisely than ever.
One breakthrough advancement that's causing quite a stir is genomic sequencing.
This technique allows doctors to analyze an individual's genetic sequence and pinpoint their unique genetic makeup. With this information, they can devise treatments finely tuned to each person's needs.
In fact, studies have shown that genomic sequencing can help match cancer patients to the most effective treatments based on their unique genetic makeup, significantly improving survival rates and treatment outcomes.
A recent study even showcased that patients who underwent genomic-guided therapy experienced an astonishing 35% higher overall response rate than those receiving conventional treatments.
Imagine a world where there are no more blanket treatments, only personalized care that targets the source of individual cancers.
In terms of the target market, the projected size of the global genomics market is a staggering $29.1 billion by 2025, and the profound impact on cancer, as the primary target for genomic analysis, is nothing short of colossal.
Here is the next question: Is this technology truly available, accessible, and sustainable in the long run? The resounding answer is yes.
The rise of next-generation sequencing as the gold standard in selecting cancer treatments has put the spotlight on access and affordability. Sequencing technology, once the sluggish tortoise in the race, has transformed into a lightning-fast hare.
Remember the mythical "$1,000 genome?" Well, it's no longer a myth.
Thanks to the groundbreaking unveiling of the $100 genome by Ultima Genomics in 2022, the cost of whole-genome sequencing has plummeted to a fraction of its former self. As costs continue to nosedive and swiftness skyrockets, the stage is unequivocally set for a genomic revolution, with cancer patients emerging as the ultimate beneficiaries of this scientific triumph.
Consequently, the biotechnology and healthcare market stands on the precipice of a seismic shift as Thermo Fisher and Pfizer join forces to democratize genomic sequencing.
With an initial focus on lung and breast cancer patients across more than 30 countries in Latin America, Africa, the Middle East, and Asia, this duo aims to shatter the barriers that have limited access to cutting-edge testing resources.
That is, more lives are about to be touched by the power of precision medicine.
This collaboration also unveils a compelling investment opportunity. As the demand for next-generation sequencing technologies skyrockets, Thermo Fisher Scientific, the vanguard of sequencing equipment and reagents, stands poised to ride this wave of progress.
Envision sales figures soaring as they equip local laboratories, guaranteeing the possession of indispensable technology, robust infrastructure, and expertly trained personnel to orchestrate these genomic symphonies.
Meanwhile, Pfizer, not content with just making blockbuster drugs, seeks to make DNA tests more affordable for patients and enlighten healthcare providers about the tremendous benefits of genomic screening.
As the costs of sequencing continue to decrease, even enabling the elusive $1,000 genome to become a reality, the accessibility and adoption of genomic sequencing are poised to expand, paving the way for personalized cancer therapies and transforming the landscape of oncology. Can you hear the sound of stock prices ascending?
So hold onto your lab coats and stethoscopes; Thermo Fisher and Pfizer's collaboration is about to reshape the landscape of cancer treatment.
As investors, consider the potential windfall of increased demand for sequencing technologies and expansion into emerging markets.
As humanity, marvel at the possibilities that arise when genomic superheroes unite. The era of personalized medicine is dawning, and these two trailblazers may just be your ticket to ride the genomic wave of the future.
Mad Hedge Biotech and Healthcare Letter
May 9, 2023
Fiat Lux
Featured Trade:
(WEIGHT LOSS DRUGS: THE NEXT BIG THING OR JUST HYPE?)
(LLY), (NVO), (PFE), (JNJ), (AMGN), (ALT)
Selling hot products and crushing the competition is where the real money's at. However, the challenge is to avoid falling for the hype. You need to assess a company's growth to know if it's worth investing in for the long haul.
If you have heard of tirzepatide, then you know that this drug has taken the pharma world by storm, making Eli Lilly (LLY) the talk of the town. In fact, this popular treatment helps patients drop more than 20% of their weight. No wonder it's got everyone hyped up.
But it's not just Eli Lilly that's causing a stir. Novo Nordisk (NVO) has a similar drug that's making waves, too.
In the world of pharmaceuticals, few drugs have generated as much buzz as Lilly's tirzepatide and Novo's semaglutide. These medications are projected to be among the top sellers of the decade.
These game-changing treatments have joined the ranks of iconic meds like the birth control pill, Prozac, and Pfizer’s (PFE) Viagra.
As expected, the share prices of both Eli Lilly and Novo Nordish have gone through the roof. They're already valued at around $400 billion each, placing them right behind industry leader Johnson & Johnson (JNJ).
Still, drug development is unpredictable.
A recent reminder of this was the biotech company Altimmune's (ALT) disclosure in March that a significant number of patients in a closely watched trial of its new weight-loss drug dropped out due to gastrointestinal issues.
That’s why it's essential to distinguish between opportunity and hype. More importantly, it’s critical to determine what exactly makes Lilly's tirzepatide and Novo's semaglutide so game-changing.
First, it's crucial to know that these two drugs come in various forms and are marketed for different conditions.
Novo's semaglutide is sold under the names Ozempic and Wegovy for Type 2 diabetes and obesity treatment, respectively, as well as Rybelsus, a pill for Type 2 diabetes. Lilly's tirzepatide, on the other hand, is currently only available as Mounjaro, an injection for Type 2 diabetes, but may soon have a new name added to the roster.
The real revolutionary aspect of these drugs is their effectiveness in lowering blood sugar and promoting weight loss. They mimic natural hormones that stimulate insulin production and slow digestion, making people feel fuller for longer.
Weight loss has long been a tricky area for drug development, with previous attempts being either ineffective or dangerous, resulting in many weight loss drugs being removed from the market.
But these drugs from Novo and Lilly are proving to be safe, albeit with significant side effects, and their efficacy is impressive.
In one trial, patients using Lilly's tirzepatide lost an average of 22.5% of their body weight, while patients on Novo's semaglutide lost 14.9% of their body weight in a separate trial. By comparison, a previous Novo drug called Saxenda only cut patients' body weights by 7.4%.
Another pressing question is about the availability of these drugs.
Mounjaro and Novo's Ozempic, Wegovy, and Rybelsus are already available on the market but have been in high demand and short supply.
To address this issue, both companies have announced plans to increase production. In April, Novo revealed that it had secured a new contract manufacturer, while Lilly has stated that it plans to double its production capacity for Mounjaro and similar drugs by the end of 2023.
Considering the market size and potential for these treatments, it comes as no surprise that competitors are already emerging.
Pfizer is currently developing a similar pill to tirzepatide and semaglutide, while Amgen (AMGN) is testing a weight-loss drug that uses a different mechanism.
Lilly has other weight-loss drugs in its pipeline, including a pill called orforglipron, which could launch in 2027. This is projected to generate $9.9 billion in sales in 2030.
Despite the emergence of competition, the weight-loss market is substantial enough to accommodate several drugs. Sales of obesity drugs are estimated to reach $30 billion by 2030, not including the Type 2 diabetes indication.
It's no secret that obesity and Type 2 diabetes are among the most prevalent health issues affecting millions worldwide. But did you know that the combined market for drugs targeting these conditions is expected to skyrocket to $90 billion globally by 2030?
Given the alarming statistics provided by the Centers for Disease Control and Prevention, such a staggering figure is not hard to fathom.
Almost 42% of American adults are obese, and about one in ten have diabetes. No wonder drug companies are racing to develop effective treatments to cater to this massive patient pool.
But what's interesting is that these drugs, which are not curative, could be a cash cow for pharmaceutical companies, as patients will likely need to take them for a long time.
This is why it’s easy to be bullish on the earnings potential of drugs like Mounjaro, with estimates for peak sales ranging from a heady $100 billion a year to a still impressive $40 billion.
In the pharmaceutical industry, buzz-worthy drugs are a dime a dozen, but game-changing medications that can revolutionize an entire market are few and far between.
Lilly's tirzepatide and Novo's semaglutide are just that.
These drugs have demonstrated significant weight loss in patients and are projected to be top sellers for the next decade. Despite the risks, Lilly and Novo's drugs are impressive, as they mimic natural hormones in the body, stimulate insulin production, and slow digestion to promote weight loss.
With the weight-loss market projected to reach staggering amounts by 2030, the potential is significant, but drug development is unpredictable, and competitors will inevitably emerge. Needless to say, investors must determine if these drugs' sky-high expectations are already factored into current share prices or if there's still room for growth.
While the weight-loss drug race is far from over, it’s clear that Lilly and Novo are off to a good start.
Mad Hedge Biotech and Healthcare Letter
May 2, 2023
Fiat Lux
Featured Trade:
(QUANTUM COMPUTING IN BIOTECH)
(MRNA), (IBM), (PFE), (NVS), (ILMN), (TEVA), (NVO), (RHHBY), (GOOGL)
When you think of the pioneering biotech, Moderna (MRNA), artificial intelligence (AI) and quantum computing might not be the first things that come to mind. Instead, you might associate Moderna more with its work in traditional laboratory research and as a leading coronavirus vaccine manufacturer.
However, Moderna has taken significant strides into the realm of AI. In fact, the biotech utilized AI during the early stages of developing its coronavirus vaccine and has also implemented the technology for other business purposes.
Now, Moderna is taking things a step further by partnering with International Business Machines (IBM) to explore the potential of AI and quantum computing in enhancing its messenger RNA research.
Needless to say, this innovative collaboration could potentially revolutionize the biotech industry.
To understand Moderna's recent developments in AI and quantum computing, it's important to first have a grasp of its mRNA technology.
Unlike traditional vaccine production that involves growing viruses in a lab, Moderna produces mRNA that provides the body with instructions to treat or prevent a particular illness. This innovative process is already faster than traditional vaccine production methods. But AI has played a significant role in making the process even faster.
Moderna has been able to leverage AI and automation to scale up mRNA production significantly. In fact, the company's mRNA production for experiments went from about 30 per month to 1,000 per month thanks to AI. Additionally, AI has contributed to the generation of more effective mRNA sequence designs, saving researchers considerable time.
Let's now take a closer look at the implications of Moderna's partnership with IBM.
One of the primary areas of focus is IBM's generative AI for therapeutics, which has the potential to provide Moderna researchers with a deeper understanding of molecular behavior, facilitating the development of new molecules for therapeutics.
Moreover, IBM's expertise in quantum computing could prove invaluable in speeding up the discovery of new treatments, enabling Moderna to push the boundaries of medical research and improve patient outcomes.
Quantum computing differs from traditional computing in its use of a system that allows for states beyond the binary 1s and 0s. Quantum computers can understand information as 1, 0 or something in-between, offering the potential for individual bits to be in multiple states at the same time. This characteristic may be beneficial in modeling the dynamic interactions among drugs, enzymes, cells, and proteins that are continuously changing.
The use of advanced systems in molecular modeling has been challenging for earlier generations of hardware. However, the incorporation of quantum computing could revolutionize the way biotech companies solve these complex problems.
As a starting point, Moderna will be part of IBM's enterprise accelerator program, which provides a platform for "quantum curious" companies to invest in building their expertise in emerging areas. This program gives access to IBM's network of computing systems and specialized training on the use of quantum computing for life sciences research.
As part of this collaboration, Moderna will gain access to MoLFormer, a powerful AI model that can accurately predict a molecule's properties. This tool will prove particularly valuable in Moderna's efforts to improve the lipid nanoparticles that encapsulate its mRNA treatments.
Additionally, the partnership includes investments in generative AI programs that will assist in the design of innovative mRNA-based treatments and vaccines, helping Moderna to further cement its position as a leader in the biotech industry.
IBM had previously attempted to make a name for itself in AI-powered drug discovery, offering services through its Watson platform.
However, these offerings were ultimately discontinued in 2019. Despite once partnering with major names in cancer research such as Pfizer (PFE), Novartis (NVS), Illumina (ILMN), as well as Teva (TEVA) for drug repurposing, IBM has shifted its focus to other areas of the life sciences industry.
As quantum computing technology continues to evolve, however, its potential applications have begun to attract some of the biggest names in biotech.
Companies like Novo Nordisk (NVO), Roche (RHHBY), and Boehringer Ingelheim have partnered with industry giants like Google (GOOGL) to explore the possibilities of this cutting-edge field, which is quickly moving from the realm of science fiction into a scientific reality.
As for the question of whether these moves can be a game-changer for Moderna, the answer is likely yes.
Moderna has already experienced significant benefits from AI in its processes, both in and out of the lab. With access to IBM's platforms, there is potential for further improvements in the company's research and development of new treatments and vaccines.
Efficiency, speed, and precision are crucial factors in drug and vaccine development, and any improvement in these areas could have a significant impact on Moderna's success. Although the results of the IBM partnership may not be immediately visible, Moderna's investments in AI and quantum computing could pay off in the long run.
With continuous innovation and portfolio expansion, Moderna is well-positioned to capitalize on market opportunities presented by mRNA technology and achieve substantial revenue growth in the years ahead.
Therefore, investors should not be overly concerned about short-term stock price fluctuations or declines in revenue from coronavirus vaccines. After all, Moderna has a robust pipeline and has demonstrated significant potential with promising clinical trial results.
Hence, investors should consider Moderna as a long-term investment opportunity, making it a valuable addition to any investment portfolio.
Mad Hedge Biotech and Healthcare Letter
April 25, 2023
Fiat Lux
Featured Trade:
(SMALL BIOTECHS, BIG OPPORTUNITIES)
(PFE), (SGEN), (MRK), (RXDX), (BMY), (BIIB), (ETNB), (KRTX), (MORF), (IDYA)
The biopharma sector has seen a flurry of merger and acquisition activity recently, and the trend seems to continue. This is good news for smaller biotech stocks looking to capitalize on the trend.
In the first quarter of 2023, the total healthcare and life sciences M&A in the United States reached roughly $71 billion, more than double the $28 billion seen in the same quarter in 2022. Notably, this figure includes Pfizer's (PFE) acquisition of Seagen (SGEN) for $43 billion.
Still, the situation isn't as dire as it may seem especially considering that in 2022, the total M&A spending in the U.S. dropped to about $300 million year over year from the $400 billion recorded in 2021.
The main culprit behind this trend appears to be higher interest rates, which have made financing a deal less appealing for buyers, particularly when there is the potential for a less optimistic profit outlook due to a slowing economy.
Even with these concerns, pharmaceutical deals have been far from stagnant since the end of the first quarter.
Merck (MRK), a biopharmaceutical company with a market capitalization of $288 billion, announced that it would purchase Prometheus Biosciences (RXDX) for roughly $11 billion, representing a premium of about 75% over the pre-announcement price. The announcement had a considerable impact on Prometheus stock, which saw a surge in value.
Shareholders of Prometheus enjoyed significant gains as Merck seeks to replace its revenue stream from cancer treatment Keytruda, which generates just over $20 billion annually.
Keytruda's patent is set to expire in 2028, leaving room for competitors to gain market share and making Merck's acquisition of Prometheus a critical move. For context, Prometheus's ulcerative colitis product alone has a total available market worth roughly $30 billion.
This deal could be just the beginning of a wave of new mergers and acquisitions in the biotechnology and healthcare industry. Experts note that we are entering a "smart optimism" period in the sector.
It makes sense for larger pharma companies to explore mergers and acquisitions in the current market for several reasons.
For one, many larger companies are seeking to revamp their drug pipelines. Take Bristol Myers Squibb (BMY), for example, which has a market capitalization of $146 billion. Sales of its myeloma treatment, Revlimid, likely peaked at just over $12 billion in 2021. As the patent for Revlimid expires, the company is expected to lose market share, causing sales to plummet to the low hundreds of millions.
While the company has several new drugs in development, it may still seek to acquire smaller firms to safeguard its future. However, given that Bristol has just over $9 billion in cash, any significant acquisitions it pursues could require taking on debt. Such a move would not be unprecedented, as Pfizer financed roughly 70% of its Seagen purchase with long-term debt.
Another big name that could be on the lookout for an attractive deal is Biogen (BIIB), a company with a market capitalization of $42 billion. Biogen is reportedly interested in the neuropsychiatric and inflammatory sectors and could strike a deal as early as the latter half of 2023.
Looking at things from a seller's point of view, many of these companies are now much less valuable than they once were on the public market and, therefore are easier targets for acquisition.
The SPDR S&P Biotech ETF (XBI) has taken a 50% hit from its all-time high set in February 2021. This is mainly due to higher interest rates, which have diminished the perceived value of future profits. Since many small biotechs are valued based on their projected earnings well into the future, this has significantly affected their stock prices.
Some biotech companies have been eyed as potential takeover targets due to their reduced market value.
One is 89bio (ETNB), with a market cap of $1.2 billion and a stock price falling by more than 50% from its all-time high, could be a potential target.
Similarly, Karuna Therapeutics (KRTX), which has a market cap of $7.4 billion and has seen a decline of almost 30% from its all-time high, is also considered an acquisition candidate.
Morphic Holding (MORF), with a market cap of $1.8 billion and a drop of more than 35% from its all-time high, and Ideaya Biosciences (IDYA), which has a market cap of $706 million and has lost almost half its value from its all-time high, could also be targeted for acquisition.
Overall, this is a promising period for the sector. So, take a moment to consider some of the smaller biotech firms in the market. Suppose these companies have a hard time finding interested buyers. In that case, there is still hope for shareholders as there's a chance that a larger corporation may step in and make an acquisition, leading to a substantial payout.
