New Technologies
For Health

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  • After two very tough years marked notably by political rhetoric on drug pricing and a very low level of drug approvals by the FDA in 2016, we believe Biotechnology is ripe for a rerating in 2017
    • as some important drug approvals might change the perception around the sector and valuations are undemanding, a catalyst for M&A
  • Specifically, the first drug to be potentially approved using genes as medicines (Spark Therapeutics) and the first potential approval for the CAR-T drug (Kite Pharmaceuticals) could support sentiment as we move towards mid-2017 
  • We also believe that personalized medicine is not far away from becoming ubiquitous as prices for new testing (including DNA analysis) and analysis are coming down sharply
  • Against this backdrop, we favor Biotech companies exposed to gene therapies, antibodies and rare diseases over the larger market cap names which benefited more from rising drug prices than from volume growth