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.
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.
CMS – Centers for Medicare & Medicaid Services.
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.