Biotech Acquisitions Are Reshaping the Market
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Entry is the asset's closing price on the publication date. Current is the last close on record.
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Entry $65.31 01 Aug 2026Current $64.41 09 Sep 2026Result −$0.90vs. index −3.4% SPY +2.1% over the same days
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Surrounding source transcript
…st have wanted because of the size of the sector to see healthcare step forward and take some leadership. It hasn't, but there are idiosyncratic stories underneath the surface that should have you allocating in the direction of healthcare, whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well. The GLP-1 story, Eli Lilly, the biotechs have worked really well. I think at some point there is going to be AI-oriented healthcare opportunity, whether it's drug discovery, uh whether it's robotics, diagnostics, whatever the case may be. …
whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well.
AI-extracted context “should have you allocating in the direction of healthcare, whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well.”
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Entry $414.40 01 Aug 2026Current $393.06 09 Sep 2026Result −$21.34vs. index −7.2% SPY +2.1% over the same days
Cite this call Watch source video * †
Surrounding source transcript
…st have wanted because of the size of the sector to see healthcare step forward and take some leadership. It hasn't, but there are idiosyncratic stories underneath the surface that should have you allocating in the direction of healthcare, whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well. The GLP-1 story, Eli Lilly, the biotechs have worked really well. I think at some point there is going to be AI-oriented healthcare opportunity, whether it's drug discovery, uh whether it's robotics, diagnostics, whatever the case may be. …
whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well.
AI-extracted context “should have you allocating in the direction of healthcare, whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well.”
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Entry $130.20 01 Aug 2026Current $147.60 09 Sep 2026Result +$17.40vs. index +11.3% SPY +2.1% over the same days
Cite this call Watch source video * †
Surrounding source transcript
…st have wanted because of the size of the sector to see healthcare step forward and take some leadership. It hasn't, but there are idiosyncratic stories underneath the surface that should have you allocating in the direction of healthcare, whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well. The GLP-1 story, Eli Lilly, the biotechs have worked really well. I think at some point there is going to be AI-oriented healthcare opportunity, whether it's drug discovery, uh whether it's robotics, diagnostics, whatever the case may be. …
whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well.
AI-extracted context “should have you allocating in the direction of healthcare, whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well.”
Full Transcript
Let's get a check on healthcare. It's a top sector over the last 3 months at 14 and 1/2% BTIG's Jonathan Krinsky saying it's close to breaking a multi-year downtrend. All the chart readers kind of love it. It's been emerging and basing and and and performing in a way that is anti-tech. I guess it's useful in that sense. Jason put a storyline around some of this maybe with biotech in particular. Obviously deals have picked up and the acquirers have had their stocks do pretty well. So I guess encouraging more activity. >> Absolutely. So I I think the major catalyst obviously for for biotech is the patent cliffs, right? I mean that's that's what's driving all the M&A. These big pharma companies have to stop gap some of these revenue streams that have been lost from like a you know we always we always talk about AbbVie and Humira. Humira was 30% of their revenue 2 years ago. They need to replace that revenue stream with the you know with the biosimilars now you know off off the off the balance sheet. So for me I think that's what's been the major driver. >> IBB's up 12% XBIs up even more. I know Joe that's one you own but that's been the story in in kind of the bio biotech complex for that. >> Healthcare is being remade. So there's a company in the private markets Time Care which handles so all the payers in varying levels Humana CVS United Health outsource their cancer journey their cancer care for patients. The company has grown 100% a year wildly profitable and the insurers make money. So it's being remade healthcare. So they're adding to the bottom line of Humana of CVS of United Health of Aetna meaningfully. So that's the way healthcare is going all driven by value-based care which is required for Medicare and Medicaid by 2030 where the providers have to assume the risk. So I think you have to watch for companies like Time Care and others in the private markets when they go public because they will be huge winners. >> I mean, it's been the promise for so long. >> Yeah, and it's happening. >> Yeah. And I think in the last several years investors and portfolio managers just have wanted because of the size of the sector to see healthcare step forward and take some leadership. It hasn't, but there are idiosyncratic stories underneath the surface that should have you allocating in the direction of healthcare, whether it's a Bristol Myers or a >> United >> or or a United or a Merck, they're all working well. The GLP-1 story, Eli Lilly, the biotechs have worked really well. I think at some point there is going to be AI-oriented healthcare opportunity, whether it's drug discovery, uh whether it's robotics, diagnostics, whatever the case may be. It just if you think about the amount the significant amount the trillions of dollars that are going to be spent over the next 5 to 10 >> already. I mean, I sit on the board of a company where we're invested digital diagnostics, which in had the first AI software that diagnoses diabetic retinopathy, leading cause of blindness, affects 450 million 440 million globally with over 90% accuracy versus conventional exams, which are 33%. So, it's been happening. You're just not hearing about it as much because these are large companies and the inroads are really picking up steam. >> I think it supports the premise of be there, be allocated to healthcare, but I don't know collectively if the investment community has accepted it and said, "Okay, we're moving to it." One name that's interesting >> markets, they certainly have. >> In the private markets, and you see that and you have that visibility much better than I do. But look, if we could Can we show a chart of Intuitive Surgical over the last year? Cuz that's like the definition of what AI should mean to healthcare, and that stock has struggled significantly. It's near a 52-week low.
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