|
Edison Investment Research Limited
London, UK, 9 October 2023
The Biotech Growth Trust: Historic low sector valuations The Biotech Growth Trust (BIOG) now has two co-managers, Geoff Hsu and Josh Golomb, at global healthcare specialist OrbiMed Capital. The trust has experienced a difficult period of relative performance due to the managers’ approach of focusing on emerging (smaller-cap) biotech stocks rather than large-cap biotech businesses, because of their higher growth prospects. This strategy has been out of favour in an uncertain macroeconomic environment. Hsu and Golomb highlight attractive valuations in the biotech sector, which are not reflecting favourable industry fundamentals, including high levels of innovation across a range of therapeutic areas and an acceleration in mergers and acquisitions (M&A) ahead of an upcoming patent cliff.
BIOG’s managers have a broad mandate and can seek out the best opportunities in both developed and emerging markets, and can hold up to 10% of the fund in unlisted securities. They can draw on the extensive resources of OrbiMed, which is one of the leading global healthcare investors. The company has recently extended its research reach by opening an office in London. BIOG’s discount is wider than its three-, five- and 10-year historical averages, offering scope for a higher valuation once the trust’s performance gets back on track.
to view the full report.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington. Edison is authorised and regulated by the . Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Mel Jenner +44 (0)20 3077 5700 Learn more at and connect with Edison on: YouTube
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
1743525 09-Oct-2023
