2 Healthcare Names to Buy After Recent Acquisitions
I will continue to incrementally buy during down days in the market.
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Equities hung in there very well on Thursday given NVIDIA Corporation ($NVDA) fell just over 4% on the resignation of its longtime CEO and Q3 results and guidance from Nebius N.V. ($NBIS) kiboshed the big rebound in the stocks of neocloud providers on Wednesday.
The yield on the 10-year treasury also jumped 14 BPS on the day to close at 5.13%. Despite these events, the NASDAQ managed to keep its loss Thursday to just under .4%. The S&P 500 and Dow posted similar declines on the day. Investor complacency in light of increasing risks remains strong in my view.
I continue to underweight technology as I believe the AI bubble is still in the early innings of deflating. The political environment grew measurably darker due to the midterm election results and I think there are still more cockroaches that will emerge from the NVIDIA debacle. The interim CEO appears to be less of an advocate of the massive financial backstopping the company has been engaged within as the firm acted as a “central banker” to much of the AI ecosystem. And investors still await to see if the Anthropic (ANT) PBC will execute smoothly next week.
That said, while the music remains playing to some extent, one has to get up and dance once in a while. I will continue to incrementally buy during any significant down days in the market, executing covered call orders against reasonably priced equities. Today, I highlight two names in healthcare that I already own but will add some exposure to as opportunities present themselves. Both have made recent significant acquisitions.
Let’s start with CorMedix Inc. (CRMD), which has had a very disappointing 2026 to date and reported tepid Q3 results on Thursday.
The company’s primary asset has been substantially hurt by a change to the CMS reimbursement framework. In response, the company just acquired the assets of Heron Therapeutix for a $145 million upfront payment, just over 14 million shares of CRMD and just north of $50 million in potential earn outs.
The acquisition will be immediately accretive to both earnings and free cash flow as Heron’s products did roughly $150 million in revenues over the past 12 months. CorMedix expects to deliver $45 million to $60 million in annual operating synergies from this merger over time and this transaction will close in the first quarter. Even after the purchase, CorMedix’s balance sheet is in good shape, and the company should have better tidings in 2027. Needham and RBC Capital reissued their buy ratings and boosted their price targets on the stock this week.
Moving significantly down on the risk scale, we move on to Supernus, Inc. (SUPN). The company announced an all-stock, tax-free merger of equals with Indivior Pharmaceuticals over the summer. The combined entity will create a more diversified biopharma company focused on providing treatments for the central nervous system. The new firm will continue to trade under the SUPN ticker symbol.
The combined entity should deliver north of $2.2 billion of annual revenues and nearly $900 million of adjusted EBITDA going forward. Management expects to wring out $125 million of annual synergies from the combination. Supernus easily beat Q3 top- and bottom-line expectations during its last quarter as a standalone entity in late October. Last week, Piper Sandler reinitiated coverage on SUPN with an overweight rating and $47 a share price target. The stock currently trades just under $30.00 a share.
Piper’s analyst noted that the combined firm would have “far more business development/M&A firepower than either entity had on its own.” Bank of America also initiated the stock as a buy this month with an identical price target.
At the time of publication, Jensen was long CRMD and SUPN.
