Really sharp breakdown on the core/satellite split. The 60% allocation to foundational ETFs after each M&A win is smart risk managment, but what stands out is the biotech concentration strategy itself. Focusing on sub-$10 nanocaps with specific catalysts (FDA approvals, trial data) assumes big pharma is actively scanning for early-stage acqusitions, which historically holds up but can get messy when macro turns sour and dealflow dries up. I've noticed during past rate hike cycles that these small-cap biotechs get crushed even with solid pipelines, just because acquirers go defensive and hoard capital.
Really sharp breakdown on the core/satellite split. The 60% allocation to foundational ETFs after each M&A win is smart risk managment, but what stands out is the biotech concentration strategy itself. Focusing on sub-$10 nanocaps with specific catalysts (FDA approvals, trial data) assumes big pharma is actively scanning for early-stage acqusitions, which historically holds up but can get messy when macro turns sour and dealflow dries up. I've noticed during past rate hike cycles that these small-cap biotechs get crushed even with solid pipelines, just because acquirers go defensive and hoard capital.
so far this year big Pharma has been very active
I do banks also the Trump Admin has opened the M&A floodgates