Biotech may be turning around now

edited 30 November -1 at 1:00AM in Savings & Investments
32 replies 4.3K views
BrockStokerBrockStoker Forumite
764 Posts
Sixth Anniversary 500 Posts Name Dropper Combo Breaker
✭✭✭
edited 30 November -1 at 1:00AM in Savings & Investments
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.
«134

Replies

This discussion has been closed.
Latest MSE News and Guides

A guide to council tax bands

Lower your band & save £1,000s

MSE Guides

Cinema MoneySaving tips & tricks

Including year's 2for1 movies for £1

MSE Deals