Just some observations. I've been watching IMU for a long time...

Just some observations. I've been watching IMU for a long time now and took my first nibble in today. I've found over the years that biotechs almost universally need to be traded. What I mean by this is that your chances of finding the one that happens to make it are slim. What's worse, is that often the goal is a BP buyout which from a traders perspective is more like a sword of Damocles. Why? Because it limits your upside. Say you value their opportunity at some percentage of TAM, realistically will that full value actually be realised? Likely not because your time frame is limited by when the buyout will occur. Which means timing is critical on biotechs. You need to enter when they have decent cash balances, are progressed and enter with a parcel small enough that you are prepared to defend. Where by defend I mean you have to be prepared on the fund raises and set backs to average down so that your average price is lower than the premiums that are being paid above current price for TO in the sector. Otherwise you can be right and still lose money. In times such as now where CRs have to be done at larger discounts and TO are at smaller premiums I feel like it is a tricky sector to be in and not as simple as other sectors where you value it, buy in and can hold for the long run and win if your thesis is correct. If you are taking care of your average then the upside of course is much larger. I hope that perspective helps someone.