Biotech innovations remain at forefront as pandemic continues

THE first quarter of 2021 was challenging for the biotechnology industry, as the sell-off in March represented a sharp reversal from record highs in February. As the pace of vaccinations picked up worldwide, investors turned their focus to reopening and an economic rebound, rotating out of biotech and into cyclicals, financials, energy, and the Covid-19 recovery trade. A string of high-profile clinical trial failures and regulatory disappointments, as well as a resurgence in drug-pricing policy discussions, did little to sustain momentum in the sector.

In Q2, our strategy remained unchanged despite the market volatility of the past few months. As always, we continue to concentrate our investments in biotech companies whose products are best-in-class, first-in-class, or only-in-class, and address diseases with significant unmet medical needs delivering clinical value to patients, physicians and payors. We are also mindful of valuation, as well as quality of management and financial position in the current environment.

HEADWINDS AND TAILWINDS