To US Financial Professionals servicing non-US persons

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 minimising downside risks.

Key takeaways

  • The healthcare 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 commercialise 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 minimise risk and allow investors to take advantage of healthcare’s unique growth drivers.

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Jul 27, 2022

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 does not predict future returns. 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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The Janus Henderson Horizon Fund (the “Fund”) is a Luxembourg SICAV incorporated on 30 May 1985, managed by Henderson Management S.A. Henderson Management SA may decide to terminate the marketing arrangements of this Collective Investment Scheme in accordance with the appropriate regulation. This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions.
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Jul 27, 2022