In this outlook video, Ethan Lovell, Co-Portfolio Manager for the Janus Henderson Global Life Sciences Strategy, explains that scrutiny over drug costs has led to recent volatility in healthcare stocks. The longer-term picture, however, is very encouraging with the sector making dramatic leaps in advanced medicines such as immunotherapy, which provides potentially significant market opportunities.
Ethan answers:
- What has been driving volatility in the healthcare sector recently?
- What long-term tailwinds do you see benefiting the healthcare sector?
- What innovations are you most excited about this year in healthcare?
Glossary:
Biosimilar – a biopharmaceutical drug designed with properties that are almost identical to a previously licensed drug manufactured by a different company. These products function in a similar way to the original drug.
EBITDA – earnings before interest, taxes, depreciation, and amortisation. This is an accounting measure used as a proxy for a company's current operating profitability.
EMEA – European Medicines Evaluation Agency.
Immuno-oncology – an approach to cancer treatment whereby an individual’s immune system is harnessed and used to attack cancer cells in the body.
Pharmacy benefit manager (PBM) - a third-party administrator of prescription drug programmes.
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
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