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15 handpicked stocks

Pharma's Next Big Deal

This carefully curated group of stocks features promising biotech companies with valuable drug pipelines. These smaller firms could become the next targets for lucrative partnerships or acquisitions by pharmaceutical giants, similar to Glenmark's recent $2 billion deal with AbbVie.

Author avatar

Han Tan | Market Analyst

Published on July 11

Your Basket's Financial Footprint

The basket's total market capitalisation is 59,457.33 ($59.46B), concentrated in a few large-cap stocks that anchor most of its value. This concentration tends to reduce volatility while limiting potential for outsized short-term gains.

Key Takeaways for Investors:
  • Large-cap dominance suggests generally lower volatility and more predictable returns, closer to broad-market behaviour.
  • Suitable as a core holding for diversified portfolios, not a speculative trade.
  • Likely to deliver steady long-term value rather than explosive short-term gains.
Total Market Cap
  • BBIO: $10.39B

  • RPRX: $21.86B

  • ORIC: $1.22B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Big pharma companies increasingly acquire innovation by partnering with smaller, specialized biotech firms. This creates opportunities to invest in potential acquisition targets before they receive partnership offers that can send stock prices soaring, as seen with Glenmark's nearly $2 billion AbbVie deal.

2

What You Need to Know

These companies are clinical-stage biopharma firms developing novel therapies in high-demand areas like oncology and rare genetic diseases. They absorb early R&D risk but offer significant upside potential if their innovative pipelines attract partnership interest from larger pharmaceutical companies.

3

Why These Stocks

Each company in this group has been selected for its innovative pipeline and similarity to the profile of firms that typically attract major partnership deals. They represent smaller biotech companies with valuable drug candidates that could be attractive acquisition targets for pharmaceutical giants.

Why You'll Want to Watch These Stocks

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Billion-Dollar Deal Potential

These companies could be the next Glenmark, which secured a $2 billion licensing deal with AbbVie. Even early-stage partnerships can bring substantial upfront payments, sometimes in the hundreds of millions.

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Innovation That Big Pharma Needs

Large pharmaceutical companies increasingly depend on smaller biotech firms for innovation. With patents expiring and pressure to deliver new drugs, these nimble companies with cutting-edge pipelines become valuable acquisition targets.

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Takeover Premium Opportunity

When acquisition offers are announced, target company stocks typically surge. By investing before a deal is announced, you position yourself to potentially benefit from the significant premiums paid in biopharma acquisitions.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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