Good callout. The Royalty Pharma structure changes the power dynamics versus past biotech arbs, but I agree it doesn’t make this a ‘locked’ spread. That’s why I’m treating this as an event-driven momentum trade, not a classic arb; upside is there, but so is renegotiation risk.
Good callout. The Royalty Pharma structure changes the power dynamics versus past biotech arbs, but I agree it doesn’t make this a ‘locked’ spread. That’s why I’m treating this as an event-driven momentum trade, not a classic arb; upside is there, but so is renegotiation risk.