If These Biotech Stocks Pull Back, I'll Be Ready to Pull the Trigger
Here's why I'm waiting to add to my stakes in these two biopharma names.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
I have a slug of new cash to deploy into the market in the coming months courtesy of options expiration on Friday. A large proportion of this came from successful covered-call trades around the myriad small- and mid-cap biotech names that I have highlighted here throughout 2025. Of course, to be fair, the last couple of quarters, it has been like shooting fish in a barrel across the biotech sector. This area of the market has seen a huge boost in investor sentiment as mergers and acquisitions have picked up in the back half of this year. The State Street SPDR S&P Biotech ETF (XBI) is up nearly 75% since the exchange-traded fund's recent lows following the announcement of reciprocal tariffs in April.
I have been fortunate to have had pieces of a half dozen biotech stocks that have accepted buyout offers since September. The latest being Amicus Therapeutics (FOLD) , which was purchased by mid-cap name Biomarin Pharmaceuticals (BMRN) on Friday. It was a smart strategic pick up by Biomarin, whose stock flew up more than 15% higher on Friday thanks to the announcement. It is a rarity to see the acquirer get that or any bump from M&A activity, but market action attests to Biomarin’s shrewd move.
As I noted in my column Friday, biotech is overdue for at least a bout of consolidation or some profit taking after its huge recent rally. M&A volume will have to be more than solid to keep the current momentum going. In today’s column, I will highlight a couple of names that I still retain positions within even after quadruple witching Friday. I will add to them on any decent pullbacks in the sectors in the months ahead.
Let’s start with Cytokinetics, Incorporated (CYTK) , a mid-cap name I last gave a shout out to in early September. The stock is up around 25% since then. Late last week, the company’s lead candidate garnered Food and Drug Administration approval as a treatment for symptomatic obstructive hypertrophic cardiomyopathy, which is caused by a thickened heart muscle.
The company is projected to be unprofitable for several years but will see a huge ramp up in revenues. Sales are projected to come in at over $2 billion by 2030. The stock has a market cap of just less than $7 billion and should end 2025 with approximately $1.2 billion in cash on its balance sheet to support its coming marketing rollout. The stock has had a nice run up, but FDA approval might make it a more desirable buyout target. If the shares pull back in the mid- $50s, I will add to my stake in CYTK.
Mineralys Therapeutics, Inc. (MLYS) is also on my biotech pullback list. The company’s lead asset lorundrostat, a blood pressure medicine, is the potential "best in class" aldosterone synthase inhibitor in a large market. Management should submit a marketing application for lorundrostat in early 2026. Mineralys did a capital raise over the summer and is well funded into 2028. Projected sales are expected to breach $1 billion in annual sales by 2030, and the stock has a market cap of just less than $3 billion. This is a name that has made several potential biotech buyout lists. The shares have had a decent recent bout of profit taking, and I will add to my position in MLYS on the next blip down in the overall market.
At the time of publication, Jensen was long BMRN, CYTK, FOLD, MLYS and XBI
