Dylan's Diary

    Biotech is officially “on sale” — here’s what that means

    Dylan Jovine
    Tuesday, December 23, 20255 min read
    Biotech is officially “on sale” — here’s what that means

    Dear Reader,

    Today is Tuesday, December 23rd, and we are just about at Christmas now. I know a lot of you are excited.

    I’ve got a 17-year-old and a 10-year-old, so the holidays feel a little different these days.

    When they’re little, they jump up and down, they scream, they can’t wait to rip open presents.

    When they get older… It feels a little more like a heist.

    “What do you need?”

    “What do you want?”

    It’s funny — but I still love this time of year. Whatever holiday you celebrate, it’s a season where everyone seems a little nicer… the lights are everywhere… everything feels a bit brighter.

    Who doesn’t love that?

    Today I want to talk about something big that just happened in biotech.

     width=549 height=309 /></a><br />One of the companies in our Biotech Insider model portfolio — <strong>Amicus Therapeutics</strong> — has officially been acquired by BioMarin for <strong>$4.8 billion</strong>, or <strong>$14.50 per share in cash.</strong></p><p>Now, this is one of those <em>good news / bad news stories.</em></p><p>The good news?</p><p>Many of our long-time readers bought this stock at $6… $7… even $8 a share.</p><p>We’ve gotten a lot of emails this week saying:</p><p>“Dylan — nice job. We doubled our money.”</p><p>If that’s you — congratulations. Truly.</p><p>Amicus is a great company focused on rare diseases.</p><p>They built an incredibly valuable patent portfolio. This is a real asset.</p><p>Now for the honesty part.</p><p>We officially <em>recommended</em> Amicus at $12.</p><p>So for the “official” tally — this is about a <strong>21% gain.</strong></p><p>A win? Yes.</p><p>A victory parade? No.</p><p>And we had to sit in the mud with it for a while.</p><p>We held it through tough markets.</p><p>So no chest-thumping here.</p><p>But there’s a lesson — and it’s an important one.</p><p>If you’ve been investing as long as I have (35+ years)… you learn something powerful:</p><p><strong>If you only buy when things look “safe,” you will never buy anything <em>cheap.</em></strong></p><p>Right now, healthcare and biotech stocks are trading at <strong>the cheapest levels we’ve seen in 30 years.</strong></p><p>Thirty. Years.</p><p>The last time I heard valuations described that way was during COVID… when oil futures literally went <strong>negative</strong> because nobody wanted the stuff.</p><p>We loaded up on energy in Takeover Targets after that.</p><p>And we were right.</p><p>This feels the same.</p><p>Right now, biotech is in that strange place where the public wants nothing to do with it, the media barely talks about it, stocks look “broken,” and most investors simply don’t want to touch the sector.</p><p>And ironically, that’s usually when some of the biggest fortunes are made in this business.</p><p>Think about it like this.</p><p>If you walked into your grocery store and everything was suddenly marked 50% off, you’d probably be thrilled.</p><p>If you went car shopping and the car you wanted was suddenly half-price, you’d be running to the dealership with a smile on your face.</p><p>But when the market puts biotech “on sale” at 50% off, instead of celebrating, most people panic.</p><p>They freeze. They sell. They walk away.</p><p>The professionals don’t do that.</p><p>The professionals step in and buy when great businesses are marked down simply because sentiment is bad.</p><p>And it’s not just individual investors who recognize that — big pharmaceutical companies do, too.</p><p>That’s exactly why BioMarin just bought Amicus, and it’s why we’ve seen wave after wave of biotech takeovers after past crashes. When outstanding assets are suddenly cheap, the smart money doesn’t hesitate.</p><p>That’s why if you aren’t already a member, there is no better time to join Biotech Insider than today.</p><p>Remember, this isn’t theory for us — it’s what we’ve lived through for years. Look at our track record in Biotech Insider.</p><p>In 2024, we posted a <strong>48% average gain</strong> on closed positions.</p><p>In 2023 it was <strong>58%.</strong></p><p>In 2022 we were down about 4.7% — and we’re honest about that.</p><p>In 2021 it was <strong>86%.</strong></p><p>In 2020 it was <strong>18.9%.</strong></p><p>In 2019 it was <strong>41.9%.</strong></p><p>And in 2018 it was <strong>88.5%.</strong></p><p>That’s not luck. That’s discipline. That’s what happens when you buy high-quality companies when everybody else is too scared to.</p><p>So what happens next?</p><p>In my view, we’re setting up for another major takeover wave, very similar to what we saw after the 2018 biotech crash.</p><p>If you remember, within roughly 90 days, we saw takeover after takeover — <strong>Loxo Oncology, Tesaro, ChemoCentryx, Krystal Biotech…</strong> it just kept happening, because big pharmaceutical companies looked around and realized they could buy tremendous assets at discount prices.</p><p>I believe we are heading into that type of environment again.</p><p>History doesn’t repeat perfectly, but in biotech, it has a funny way of rhyming.</p><p>And if you’re a Biotech Insider member, I encourage you to take a fresh look at the model portfolio right now.</p><p>And if you’re not, don’t forget to sign up right away to stay up to date.</p><p>You’re going to see several companies we believe are prime takeover candidates — not because of hype, but because the valuations, fundamentals, and history all point in the same direction.</p><p>Biotech is on sale. Big Pharma knows it. And in my opinion, 2026 has the potential to be <em>one of the best years we’ve ever had in this space.</em></p><p>“The Buck Stops Here,”</p><div data-below-article-slot class=

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