Live Webinar Date: January 24, 2024 Time: 4:30 pm EST
Please join Option Hotline's President and Chief Options Strategist Keith Harwood as he discusses the most important market element that he is watching for the beginning of 2024. There are many indicators that people use to time their market entries, and all can certainly have value to traders. The main indicator to watch changes frequently in this type of dynamic market, so which one is the key for a professional trader today?
Please be sure to tune into this fantastic webinar as Keith Harwood explains the most important market indicator he sees driving equities at the start of 2024. You will also get a free giveaway just for signing up, so make sure you take advantage of this amazing opportunity!
Over the last few weeks, Merck said it would pay $680 million for Harpoon Therapeutics. Johnson & Johnson even said it would buy Ambrx Biopharma for $2 billion. Both come just weeks after Bristol Myers bought Karuna Therapeutics for $14 billion, and RayzeBio for $4.1 billion. Even AbbVie just bought ImmunoGen for $10.1 billion, and Cerevel Therapeutics for $8.7 billion.
However, this may just be the start of a bigger M&A trend.
In fact, “2024 will likely see a series of new, and significant, merger and acquisition (M&A) deals for biopharma, building on a flurry of buyout announcements seen in the closing weeks of 2023, according to a report released to coincide with the 42nd Annual J.P. Morgan Healthcare Conference,” as reported by Genetic Engineering & Biotechnology News.
“Behind all the deal making in 2023, and M&A activity anticipated for 2024, are several factors: Drug developers, especially pharma giants, need to replenish revenue due to be lost as several longtime blockbusters lose patent exclusivity, and find it quicker and ultimately cheaper to do so through M&A rather than spending years developing candidates, in-house or via partnerships,” they added. “The top 25 biopharmas are sitting on heaps of capital set aside for the purpose of deal making—$1.37 trillion.”
For broader exposure to potential biotech M&A, investors can also pick up ETFs, such as:
SPDR S&P Biotech ETF (XBI)
One of the best ways to diversify at less cost is with a biotech ETF, such as the SPDR S&P Biotech ETF (XBI). With an expense ratio of 0.35%, the ETF offers exposure to the S&P Biotechnology Select Industry Index. Some of its top holdings include Biogen, Veracyte, Moderna, Gilead Sciences, Amgen, and VIr Biotechnology to name a few. The ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Biotechnology Select Industry Index.
The process of exchanging value for products and services between countries started centuries ago primarily between Asia, the Middle East and Europe. Merchants from Arabia would caravan camels that were loaded down with rugs, silks and spices. Once they reached a city they’d sell their products in open market places. The method used in those days to establish a value was the bartering system. This same system is still used today in different parts of the world.
The problem with the barter system is that it’s slow. Items have to be dealt with one at a time. The seller’s time is tied up with the purchaser carefully inspecting the merchandise before the two of them begin to haggle until they reach an agreed upon price. Prior to the invention of coins, items of similar value had to be exchanged. If a bag of spices, for example, didn’t equal a cut of meat, the buyer or seller might have to throw in a bag of rice. Eventually, mankind solved the problems with the barter system with the invention of ‘currency’.
In some cultures, ‘currency’ consisted of beads. In others, it was animal skins or colored shells. But whatever the currency, because most inhabitants in an area used the same thing, it made buying and selling much easier.
Here’s your chance to become a bonafide “Insider” at the wildly popular Top That Trade weekly debate… syndicated on more than 100 TV stations around the world.
Being an “Insider” is not only fun and exciting… it’s empowering!
As a valued Triple-T Insider, every Friday a Top That Trade Insider Briefing will be delivered to your inbox…
With a direct link to the current Top That Trade episode and tantalizing insight you won’t find anywhere else… here are this week’s topics!
PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
1) The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the “Services”) is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by TradeWins Publishing (“TradeWins”) a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis.
2) TradeWins’ Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services.
3) Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services (“Subscriber”) should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber.
4) You should trade or invest only “risk capital” – money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more.
5) All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities.
6) Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown.
7) No representation is being made that you will achieve profits or the same results as any person providing testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have experienced losses.
8) The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber’s own election and for the Subscriber’s own risk.
If you wish to stop receiving our emails or change your subscription options, please Manage Your Subscription TradeWins Publishing, 528 North Country Rd., St. James, NY 11780
0 Response to "Top Ways to Trade the Biotech M&A Boom"
Post a Comment