The Readout Loud 390: FDA turmoil, election intrigue, AI, and more
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Feb 26, 2026 Jared Holz, a health care sector specialist at Mizuho Securities who covers biotech, pharma, M&A and investment trends. They run through biotech market tone and M&A expectations. They debate FDA turmoil and rare disease review inconsistencies. Politics and midterm effects on drug policy come up. They also touch on the Lilly vs Novo valuation gap and AI’s growing role in the industry.
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Large Caps Are Carrying Biotech Momentum
- Biotech is trading healthier now because large-cap pharma leadership has stabilized and driven positive sentiment across small and mid-cap names.
- Jared Holz notes index highs and visible large-cap strength (e.g., Gilead, HIV launches) are pulling the broader sector up despite lingering controversies.
M&A Pace Slower But Strategic Deals Continue
- Investors expected a wave of M&A but early 2026 deals were slower than hoped, though Gilead's buyout of Arcelix confirmed continued activity.
- Holz says Gilead and Arcelix were natural partners, so the deal surprised on timing more than substance.
Buyers Step In On Weakness Keeping Stocks Elevated
- Investors are buying weakness amid ongoing optimism that 2026 will be an active M&A year, creating resilience after early-year dips.
- Holz highlights persistent 3–5% daily volatility but says buyers step in on weakness, keeping indices near highs.