Two Strategies to Make Money in a Biopharma Down Market
- BPIQ
- Nov 2, 2023
- 2 min read
Great that $XBI is up this week on Fed pause
But XBI is still very low (in the $60s)
Here’s 2 ways to make $$ in this long-term biotech bear market (See 👇)
1) Smid-cap biopharma M&A targets
2) M&A arbitrages
STRATEGY 1
Invest in biopharma companies that are M&A targets
⇒ Cannot know for certain which biopharma Co's will get acquired
⇒ So focus on companies with attributes that make them M&A targets
• Especially since biopharma M&A is very active 📸
• -1 key attribute is the commercial success with a recently approved therapeutic
(See Footnote 👇 for access to our list of M&A target smid-caps)
Why do we think this strategy works? 🤔
⇒ That’s what top biopharma hedge funds appear to do
&
⇒ Their consensus & top holdings outperform XBI
• See 📸 for back-testing results
[See Footnote 👇 for access to our full article with details]
STRATEGY 2
Investing in M&A arbitrages
⇒ Play M&A arbitrage spreads for target biopharma stocks that are being acquired
• The difference between the acquisition share price & the present stock price
• [See Footnote for access to our current biopharma M&A arbitrage list]
• HZNP acquired by AMGN, is a good recent example
• At least 10% return in 1-3 months
⇒ There is a biopharma M&A arbitrage play currently @>6% spread 💡
• Deal expected to close within 4 months
• See Footnote for access to our current arbitrage list
At BPIQ, our goal is to help you make money investing in smid-cap biopharma stocks 📈
See our Footnote 👇 for access to our deeper version of this article to learn more about the above strategies
Footnote
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⇒ Current M&A arbitrage list
⇒ List of top biopharma M&A target Co.s
⇒ Detailed info re: holdings of top biopharma hedge funds
⇒ Access to our portfolios that use top and consensus holdings of hedge funds
⇒ & much more
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Posted 11/2/23
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