Q3 and Q4 Tailwinds for Healthcare and Biotech

Starting to see some tailwinds in the biotech and healthcare space.

AVDL: Currently the subject of a bidding war, Avadel Pharmaceuticals had their drug approval for Narcolepsy in May 2023. Through research and conversations with narcolepsy providers and the management team, we felt the value of Avadel’s once nightly treatment for Narcolepsy would take significant share from competing molecules, all of which are dosed twice in one night, forcing a patient to wake up to take the second dose. With an initial takeout offer from ALKS at $20/share, now surpassed by a $23/share offer from Lundbeck, we’re staying tuned to see how ALKS will respond.

SRRK: Scholar Rock seemed poised to launch their anti-myostatin, muscle building antibody in a rare neuromuscular disease, spinal muscular atrophy, until the FDA cited concerns with their manufacturer in August of this year. These hiccups in FDA filings are often easily addressed, however the FDA rejected SRRK’s filing in September and disclosed a more serious concern at the manufacturing plant in October. Until today, it was unclear whether the delay would be a few months or more than a year, but last week the manufacturer assured SRRK that they would be ready to be re-inspected by year end, much sooner than feared. We’re now looking forward to the drug launch once more, with a new FDA decision date likely in 2H26.

We’ve also spoke all year about the headwinds in healthcare and how we’ve been waiting for those to lift.

And how after the first MFN announcement with Pfizer, some breathing room has finally opened for healthcare and we believe the sector is on much firmer footing heading into 2026.