An Insider’s Guide To This Year’s Biggest Deal In Biotech

In The Next 90 Days Investors Will Make Billions: Will You Be One Of Them?

Inside today’s Daily Journal…

• Essay: The Biggest Deal In Biotech

• Court rules against Trump tariffs

• A sluggish GDP report

• Texas Pacific Land water magic

• Chart Of The Day… Deere & Company

• Today’s Mailbag: Stop losses

There’s a secret auction taking place right now, as I write this note.

In the conference rooms of two major law firms (I can’t tell you their names), the future of biotech’s biggest new drug is being negotiated. In these rooms, there’s military-grade electronic security. No one can know anything about this process. Far too much is at stake – perhaps as much as $500 billion in future revenue for the winner. For investors, an enormous windfall awaits – perhaps as much as $30 billion in gains in only a few weeks’ time.

This auction will be the single biggest payday in biotech this year. It is so valuable, I’ve decided to make sure that every single one of our dear subscribers should have access to this information, completely for free.

And, thanks to Porter & Co’s lead biotech analyst, Erez Kalir, we can tell you everything you’ll need to know to participate. I’ll be investing in this deal myself, and, I believe, it will become my most profitable trade of the year. (Yes, of course, I will wait until after we’ve published this information to buy in my own account.)

Here’s the best part. We’re going to give you everything you need to know, all of the specifics, completely for free. No kidding. Everything you need to know is below.

Why are we giving away the critical information behind biotech’s biggest deal this year?

As you know, I began publishing investment research more than 30 years ago. I sold my first publishing company (Stansberry Research) to the public at a $3 billion valuation.

Erez Kalir has been a professional investor since attending Stanford, Yale, and Oxford (as a Rhodes Scholar). His career on Wall Street is virtually unmatched. He managed hundreds of millions at Tiger Management and has worked for some of the world’s most elite hedge funds, such as Eton Park Capital Management.

Porter & Co.’s credit analyst, Martin Fridson, is the most acclaimed distressed-credit research analyst in the world. At the peak of his career, Marty was the top-ranked credit analyst on Wall Street for nine years in a row. He helped create the market for high-yield credit at Salomon Brothers.

You will not find three analysts like us, with more than a century of combined experience at the highest levels of finance, working together, at any investment bank, any hedge fund, or any other research firm in the world. Porter & Co. is a purple squirrel. There’s no other firm like us, anywhere.

We – all of us – have already made our “bones.” We write and publish our ideas today because we have a true passion for our markets and a deep desire to help other investors achieve what we have: a completely safe financial future.

Our mission these days is to make sure that you have the information we’d most want if our roles were reversed.

And, today, we’re going to prove that to you.

While the most important auction in biotech this year could end at any time, we believe it’s very likely to conclude before June 30. That gives you (and us) a very narrow window to establish a position.

It’s important to remember – this is biotech – anything could happen. But for the reasons I’ll outline below, our base case scenario is a windfall of up to $20 billion for investors.

That implies a gain of up to 100% in a matter of weeks.

This information is the single most valuable piece of information Porter & Co. will publish this year. It is so valuable, I’ve decided to make sure that every single one of our dear subscribers should have access to this information, completely for free.

Now, to be fair to Erez’s paying Tech Frontiers subscribers, they have already received this information. If that bothers you then please, don’t invest. The fact is, without the support of Erez’s subscribers, we would have never had access to this information, so it’s only right that they have received it first.

Here’s what you should know.

First, the very best biotech investors in the world have all been buying heavily. While you may not recognize the name, Baker Brothers Advisors is regarded as the savviest biotech investors in America. They famously backed Seattle Genetics (Seagen) for decades before its landmark $43 billion acquisition by Pfizer (PFE). Baker Brothers bought Pharmacyclics when it was a penny stock, then sold it to AbbVie (ABBV) for $21 billion. Most recently their major investment into Madrigal Pharmaceuticals (MDGL) generated huge gains (it more than doubled last year).

The stock we will share with you today is Baker Brothers newest, big position. They have invested over $100 million into this deal in the last few months, buying just shy of 900,000 shares. And the list of other new shareholders in the most recent 13F filings reads like a who’s who of the most renowned, science-backed research and investment shops in the world. Perceptive Advisors – major backers of Alnylam (ALNY) – own just shy of half a million shares. Biotechnology Value Fund (“BVF”) also owns just over half a million shares.

And most notably, Stevie Cohen’s family office vehicle, Point72, has increased its stake massively in the latest filings, by more than 1,600%. Cohen now owns a huge, almost 3 million share position.

Why would there be almost unprecedented overlap in ownership among the very best investors in biotech? Because the winning bidder of this secret auction will gain control of one of the most valuable pills that’s ever been developed.

No, this isn’t a weight-loss pill.

This is a first-in-class treatment for serious autoimmune disorders that impact millions of Americans and hundreds of millions of people around the world.

If you’ve ever wondered why Skyrizi suddenly seemed to sponsor every news and sports program on TV, then you know something about the size of this market. Skyrizi is one of the leading “biologics” that treat these diseases. Since its introduction in 2019, it’s generated more than $70 billion in revenue and is currently bringing in almost $20 billion per year. And it’s only one of the injectable treatments for this condition. Soon, a single pill will replace all of these medications, for virtually every patient around the world.

This new pill’s pivotal phase III clinical trials concluded last year and produced home run results. The once-a-day pill generated clinical remission by week eight and provided durable symptom relief. Analysts called the results the “best-case scenario.” The stock soared, moving up more than 10-fold.

Pills have far more attractive economics than biologics (injectable drugs), meaning they are worth even more than the biologics they replace. This new pill could generate $50 billion in profits over the next decade. What would you bid for it today – $20 billion, $30 billion? It depends on your cost of capital, your distribution channels, your marketing footprint.

Even if those projections are overly optimistic, even a $15 billion deal would generate almost 50% gains from current levels. On the other hand, the price could be even higher than we expect. Auctions like this, for well-proven small molecule drugs (aka, pills) are rare.

If this setup sounds like the kind of thing you’d like to invest in, we’d like to send you Erez’s complete report on the stock. As usual, you’ll get his critical insight into what to expect, and when, as this secret auction comes to a close.

Normally a year of Erez’s research, Tech Frontiers, costs $5,000 per year. Our Partner Pass members ($15,000 initiation fee, $499 annually) also have complete access to Erez’s research – and everything else that we publish.

Why so much? There’s one simple reason: it’s worth it.

Since joining Porter & Co., Erez has quietly amassed the best track record of any research product that I have ever published or seen published anywhere, ever before. His average annualized gain through last year’s annual Report Card was 77%. Again, that’s the average annualized return. His win percentage rate on closed positions (79%) is also unheard of in biotech investing.

As our subscribers know, there’s no better way to invest in biotech. And we want everyone – all of you – to participate.

Allocating 5% to 10% of your portfolio to biotech can make a material difference to your total portfolio return. If 10% of your portfolio is up 77%, you’re adding almost eight points to your portfolio’s total return each year. If the rest of your portfolio is getting S&P 500 returns, you’re beating the market every year.

We think that’s a great way to add “alpha” (market outperformance) to your portfolio. And we know that Erez is the best analyst in the world to help you.

So, through this offer only, we’re offering to give you Erez’s insights into this critical secret auction for free.

There’s only one catch. We want you to register separately to receive this information and, if this deal materializes as we expect – that is, if there’s around a 50% gain from this deal – then we want you to pledge to become a subscriber to Erez’s work, either by signing up for Tech Frontiers or by becoming a Partner Pass member.

You can register and review all of the details of this offer and the pledge we’re asking you to make, here.

We’re confident enough in the value of our work to show it to you upfront. We’ll only ask you for a subscription in return if we’re right.

You won’t find a better deal in financial research. Get it here.