Opportunities in Biotech

Video Transcript

Tommy Sternberg
CFA, Partner, Research Analyst
Global Equity Team

Hi, this is Tommy Sternberg, talking about investing in biotech, where today investor appetite overall remains subdued. There are a few reasons for that. First, the overall funding environment for biotech remains well below what we've seen relative to the post-pandemic boom. Second, M&A activity in the biotech space has been very light this year. Third, we've seen mixed pivotal data readouts, and fourth, for generalist investors, biotech (and healthcare more generally) is less attractive on a relative basis in this pro-cyclical environment that we currently find ourselves in. Having said all that, we do believe that there are opportunities for those companies that demonstrate successful drug development and strong product launches. Interest remains high in the obesity and metabolic space, but there is also active drug development going on in many other areas of medicine, including oncology, rare diseases, autoimmune disorders, and many more.

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