Big Pharma is Buying Biotech Stocks (how to spot the opportunities) | Ailsa Craig In The Hot Seat

What’s happening across investment trusts, UK small caps, technology and biotechnology? In this week’s QuotedData show, we look at some of the biggest developments across the investment trust market, including a major setback for Literacy Capital, the strongest and weakest performers during September and the outlook for biotechnology with International Biotechnology Trust (IBT). Matthew Read starts with Literacy Capital’s latest Q3 update and the decision to write its investment in Cubo Work down to zero. He looks at what went wrong, the risks associated with rapid expansion in flexible office space and what the development could mean for Literacy Capital and its shareholders. Andrew McHattie then reviews September’s investment trust performance, looking at the recovery in UK smaller companies, continued M&A activity, developments across US technology and AI stocks and the impact of rising bond yields on property investment trusts. Finally, Gavin Lumsden speaks with Ailsa Craig, co-manager of International Biotechnology Trust, about the outlook for biotech investing. They discuss rising M&A activity, pharmaceutical patent expiries, drug development, valuations, interest rates and some of the areas seeing the most exciting medical innovation. Ailsa also explains how IBT approaches risk, why the trust invests across baskets of biotechnology companies rather than relying on individual drug candidates and where she currently sees opportunities across oncology, rare diseases, central nervous system treatments and metabolic diseases. International Biotechnology Trust has also been shortlisted in the Specialist Equity category of the QuotedData Investors’ Choice Awards 2026. 📌 In this episode: • Literacy Capital’s Q3 update and Cubo Work write-down • UK smaller companies and takeover activity • September’s best and worst-performing investment trusts • AI, semiconductor and US technology stocks • Property investment trusts and rising bond yields • International Biotechnology Trust’s investment strategy • Why biotech M&A activity is increasing • The $400bn pharmaceutical patent cliff • Biotech valuations and interest rate sensitivity • Oncology, rare diseases, CNS and metabolic treatments • Drug approvals and the FDA • IBT’s dividend and gearing strategy CHAPTERS: 00:00 Introduction 01:10 Literacy Capital Q3 update 02:44 The problem with Cubo Work 05:56 Why Cubo is different from Literacy Capital’s other holdings 06:36 Questions around valuation and oversight 09:24 September investment trust market review 10:43 UK small-cap investment trusts 14:27 M&A driving UK smaller companies 16:52 US technology, AI and semiconductor stocks 19:47 Manchester & London Investment Trust and discounts 21:01 Property trusts and rising bond yields 22:32 Phoenix Spree Deutschland and investment trust wind-downs 24:19 International Biotechnology Trust interview 26:51 What does International Biotechnology Trust invest in? 29:09 IBT performance and investment approach 30:45 Why ageing populations support pharmaceutical demand 31:23 Where new drugs are coming from 32:41 The $400bn pharmaceutical patent cliff 34:01 Why biotech M&A is accelerating 36:05 The lifecycle of a biotechnology company and new drug 38:37 How IBT manages biotech investment risk 39:47 Rare diseases, oncology, CNS and metabolic treatments 43:08 Are biotech valuations still attractive? 45:17 IBT outlook and portfolio positioning 46:20 Biotech performance and takeover activity 49:06 How interest rates affect biotechnology stocks 51:43 US politics, drug pricing and the FDA 53:53 Which areas of biotech are most exciting? 55:35 Drug launches to watch 57:13 Pharmaceutical patent expiries 57:50 How long does it take to develop a new drug? 59:54 IBT’s 4% dividend policy 1:01:34 Vera Therapeutics 1:03:08 CAR-T immunotherapy trials 1:05:00 Closing remarks Subscribe to QuotedData for weekly coverage of investment trusts, markets, funds, ETFs and investment opportunities. For more information on International Biotechnology Trust: https://quoteddata.com/company/international-biotechnology-trust-ibt/ Visit QuotedData.com: http://www.quoteddata.com For QuotedData Events visit: http://www.quoteddata.com/events For QuotedData News visit: http://www.quoteddata.com/news QuotedData on Socials: On Twitter: https://twitter.com/quoteddata On Facebook: https://www.facebook.com/QuotedData On LinkedIn: https://www.linkedin.com/company/5378740 On TikTok: https://www.tiktok.com/@quoted_data On Instagram: https://www.instagram.com/quoted_data/ #InvestmentTrusts #Biotechnology #BiotechInvesting #InternationalBiotechnologyTrust #IBT #UKInvesting #UKSmallCaps #InvestmentNews #StockMarket #Investing #PrivateEquity #LiteracyCapital #ArtificialIntelligence #TechnologyStocks #PropertyInvesting #QuotedData