Biotech may be turning around now

BrockStoker

Usually when Trump speaks about pharma/drug pricing biotech valuations fall, as they did a couple of weeks back, but earlier today Trump met with leading industry CEOs, and talked about streamlining the FDA's approval process to speed it up and get drugs to market quicker. Whilst he also talked about high drug pricing, the talk has been muted down compared with before. Further details here:

https://www.thestreet.com/story/13972858/1/trump-in-biopharma-meeting-pledges-to-streamline-fda-cut-regulations-but-wants-lower-prices.html

This seems to me to be a potential turning point in the sector, which has been blighted by drug pricing woes for some time now. Many stocks in the sector (even blue chip stocks) have suffered and are still not back to where they were before the sector decided to go south in 2015, and I think we could start to see them recover now.

So for anyone out there looking for an opportunity, now could be a good time to buy some biotech, although you'll have to be quick as valuations are already going up. I'm already overweight in biotech so won't be buying any more at this point in time.

Although I prefer other funds (The Biotech Growth Trust PLC, and Polar Capital Biotechnology) Axa Framlinton Biotech (which I don't hold) is actually looking quite attractive now since it holds Illumina Inc in it's top ten holdings, as well as being overweight in Gilead Sciences Inc, both of which could do very well over the long term I think.

economic

i bought biotech growth trust recently. lets hope you are right.

slowpoke_rodriguez

Is Linden Thomson still with AXA? If not, where's she gone?

BrockStoker

economic wrote: »

i bought biotech growth trust recently. lets hope you are right.

We can only wait and see, but I think it's going to work out well, especially if you are prepared to hold for the long term. If there is further volatility (it's almost guaranteed), treat it as a potential opportunity to top up, but I think it may be mostly up from here and the best opportunities are probably behind us now.

BrockStoker

slowpoke_rodriguez wrote: »

Is Linden Thomson still with AXA? If not, where's she gone?

According to trustnet she is:
https://www.trustnet.com/Factsheets/tnuk/FactSheet.aspx?fundCode=FRBIOI&univ=O

AnotherJoe

I've been in biotech for 5 years, BIOG and WWH which is a half way house as it has more traditional healthcare also. BIOG has very volatile, added to it a few months back, in it for the long haul, demographics based more than anything else, but I wont be adding any more just because its at my comfort limit as I move to mostly global trackers with a little extra emphasis in Biotech and EM.

BrockStoker

I also hold WWH along with BIOG and Polar Capital Biotechnology. I think all 3 compliment each other although there is a little overlap. BIOG is the backbone of my portfolio and results in my top 9 portfolio holdings being the same as BIOGs top 9 holdings, with the 10th being BP!

AnotherJoe

That is a very scary portfolio then

BrockStoker

It's fairly aggressive



Perhaps I'm odd/foolish (?) but to me it's not even close to scary.

I'm even looking to make it a bit more aggressive by adding more small caps and a general tech fund.

AnotherJoe

So for the avoidance of doubt, in case i read your post wrong, the top 9 stocks in your portfolio are in the one sector, Biotech?

There was a time my portfolio was 100% tech (think Dell, Apple, Sandisk, Oracle and the like including some no longer with us) - Actually not Apple, unfortunately, or my butler would be typing this.

I lost a six figure sum in the dot com crash in 3 or 4 months on that lot and similar

Just needs a tweet from DJT to do that to these, at least in the short term. (though you might consider that a buying opportunity of course )

stringer_bell

have large holdings of axa fram biotech in ISA and SIPP

The ISA turned £12k into £20k so far, long term hold. Up 0.9 percent today, looks good for tomorrow, very volatile