The UK government recently revealed its ambitious Life Sciences Industrial Strategy and pledged £146m to support health care-related projects. In this Q&A, Ethan Lovell, co-portfolio manager of the Janus Henderson Global Life Sciences Strategy, provides his take on these initiatives.
Earlier this year, Prime Minister Theresa May earmarked life sciences as one of five areas critical to the UK's economic growth and commissioned a proposal on how to bolster the sector, especially as the country prepares to leave the European Union (EU). Last month, that proposal was released. The report - the Life Sciences Industrial Strategy - laid out an ambitious agenda, from launching a Health Advanced Research Programme that would fund new industries and high-risk 'moonshot*' projects, to establishing a migration system to recruit and retain highly skilled life sciences workers from the EU and beyond.
In tandem with the report's release, Business Secretary Greg Clark pledged £146m of government money for a number of health care-related projects. Those projects include £30m for hospital-based centres that deliver cell and gene therapies to patients, and £66m for developing and manufacturing vaccines.
It is still early stages, but could these initiatives signal new opportunities for investors in the UK's £64bn life sciences industry? We caught up with Ethan Lovell, co-manager of Janus Henderson's Global Life Sciences Strategy, for his take on these developments.
*medical moonshot = a novel approach to a treating a significant health problem or addressing a previously unmet medical need, using breakthrough science/technologies.
These are the manager's views at the time of publication. The information in this article does not qualify as an investment recommendation. References made to a sector and its stocks do not constitute or form part of any offer or solicitation to issue, sell, subscribe or purchase them. Examples are intended for illustrative purposes only and are not indicative of the historical or future performance of a sector or its stocks, or the chances of success of any particular strategy.
The health care industries globally are subject to differing government regulation and reimbursement rates, as well as governmental approvals of products and services, which could have a significant effect on price and availability, and can be significantly affected by rapid obsolescence and patent expirations.
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