The Biotech Growth Trust — Encouraging recent performance

The Biotech Growth Trust (BIOG) is managed Geoff Hsu and Josh Golomb at leading global healthcare specialist OrbiMed. The trust provides access to the rapidly evolving biotech sector, seeking long-term capital appreciation by investing in high-quality biotech stocks across the market cap spectrum, with a bias towards smaller, emerging biotech companies. Since Q121, the trust has faced significant performance headwinds in what has been the industry’s largest and most prolonged drawdown. However, the managers remain confident that a stark disconnect exists between current valuations and the favourable fundamentals of the biotech sector. With industry innovation at an all-time high, a generally supportive regulatory environment and major pharma companies looking to bolster their pipelines ahead of a major patent cliff, which should spur M&A activity, now may be an opportune time for investors to consider the biotech sector.