Bio-Tech funds

kinger101

Biotech covers a range of risks. At one end, there are large FTSE100 companies such as Glaxo Smithkline, and at the other, small R&D companies which don't actually sell anything but are aiming to produce an IP portfolio which they can then sell-on to a larger company.

I think you'll need to have a look at the individual stocks held in any one fund, and decide whether it matches the level of risk you're willing to take.

JohnRo

read about disease mongering and drug marketing.

Triumph13

Speaking as someone who is, quite literally, only kept alive by taking a high tech drug from a certain Swiss Pharma co every day, one of the reasons the profits have gone up so much in the last few years is the accountants have dared to ask the question 'If this is the only drug that will keep someone alive, exactly how much can we get away with charging for it?'
The answer turns out to be rather a lot, and that has triggered a drive towards developing niche drugs you can charge a fortune for rather than saying those markets were too small to be worth looking at.

planteria

JohnRo wrote: »

read about disease mongering and drug marketing.

tell us more.. what are you referring to? what articles do you suggest?

SlapShot

As an update, I today sold my entire holding in the biotech fund I had. I spent a useful 1hr at the weekend looking at the top 15 holdings, and I couldn't find one where I was comfortable with the valuation of (e.g. Price-to-Sales ratios of 10+, whereas when I bought in the sector 3.0-4.0 was nearer the norm). This smells of a bubble! So, I took advantage of todays falls to offload the entire position and buy into an emerging markets trust.... Good luck all!

planteria

interesting SlapShot, thank you for letting us know.

i'm kind of 'on board' with the Biotech concept, along with Agriculture, so i am tempted to stay invest, via the Axa fund....although making changes with platform so not a bad time to review.

the main point i would make is this: whether you have timed it well or not, i like the way that you have approached it, the effort made to understand, and logical conclusion reached. good luck:T

Totton

pip895 wrote: »

Back to the original thread - anyone come across/invest in - International Biotech Trust (IBT). It has been underperforming relative to its pears although it has picked up in the last couple of weeks and is currently on a discount of over 17%. Thought it might be worth a punt?

IBT is recommended for John Baron's IT portfolio where he holds 5% alongside BIOG (Biothech Growth Trust) at 6.5%. He recently swapped Worldwide Wealthcare (WWH) for one of those. Healthcare is one of his themes along with 'Go East'.

http://www.investorschronicle.co.uk/tips-and-ideas/our-portfolios/investment-trust-portfolio