A standoff between HHS leadership and the cancer community is testing whether the FDA's accelerated-approval pathway survives this term.
The Editorial Board reports that HHS Secretary Kennedy's proposed reforms to the FDA accelerated-approval pathway have produced an organized response from the major cancer centers, who argue the pathway is the only mechanism delivering rare-cancer treatments to patients in time. Whether the reforms move forward intact, are scaled back or are withdrawn entirely will reset valuations across the oncology biotech complex.
Our Healthcare overweight is concentrated in large-cap diversified names (UNH, LLY) precisely because we want the sector exposure without the binary regulatory risk. We are holding both, with no change today. Speculative oncology biotech is not a position we are willing to recommend through this standoff.
A 15-minute review — an update on positioning.
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