All articles tagged with #biotechs
CG Oncology's $380 million IPO debut could serve as a barometer for the future of public offerings in 2023, as the biotech industry sees a potential increase in IPO activity following a significant decrease in the past two years. Industry insiders caution against drawing conclusions based on one company, but with at least five other biotechs poised to follow suit, more data points will soon be available.
Novartis is in advanced talks to acquire Cytokinetics, a South San Francisco-based biotech company known for its promising heart drug, in a deal that could be completed as soon as this week. The acquisition reflects the trend of big pharmaceutical companies acquiring fast-growing biotechs to bolster their pipelines, and Cytokinetics, with a market value of over $10 billion, has been running a sale process. However, it's possible that another suitor could emerge or that no deal will materialize.
The US Treasury is set to unleash over $100 billion in debt this week, which could lead to a sell-off in the stock market. The "Magnificent Seven" tech stocks, which are reactive to high-interest rates, could be particularly affected. Unprofitable stocks and growth companies that rely on credit to fund growth may also be hit. The market is expected to be more resilient now, but stocks may still give up points in this environment. The author is holding onto hedges and deploying free cash into biotechs, which have been performing well. The author's Group Mind community is looking to create a conviction buy list to take advantage of the sell-off, including industrial/defense names.