For Institutional Investors in the US

Research in Action: Investing through the Ups and Downs of Biopharma Research

Even as biopharmaceutical firms continue to deliver exciting medical advances, the sector’s performance has been mixed this year, with some firms negatively impacted by rising rates, clinical trial setbacks and regulatory uncertainty and others benefiting from strong free cash flows. Portfolio Manager Dan Lyons and Research Analyst Luyi Guo explain how investors might gain exposure to the sector’s secular growth opportunities, while minimizing downside risks.

Key Takeaways

  • The health care sector continues to make significant advances in medical research, including recent breakthroughs in breast cancer and multiple myeloma. That can lead to strong revenue growth for firms that successfully develop and/or commercialize these therapies.
  • There are also significant risks, with 90% of drugs that begin human clinical trials never making it to market. Rising interest rates, regulatory uncertainty and drug patent expirations can be further headwinds.
  • Taking the long view on a drug’s lifecycle can help minimize risk and allow investors to take advantage of health care’s unique growth drivers.

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Luyi Guo, Ph.D., CFA

Luyi Guo, Ph.D., CFA

Research Analyst


Daniel Lyons, PhD, CFA

Daniel Lyons, PhD, CFA

Portfolio Manager | Research Analyst


Matt Peron

Matt Peron

Director of Research | Portfolio Manager


Jul 25, 2022

Key takeaways:

Luyi Guo, Ph.D., CFA

Luyi Guo, Ph.D., CFA

Research Analyst


Daniel Lyons, PhD, CFA

Daniel Lyons, PhD, CFA

Portfolio Manager | Research Analyst


Matt Peron

Matt Peron

Director of Research | Portfolio Manager


Jul 25, 2022