Biotech: fighting diseases with precision medicine
Biotech companies are developing drugs designed to eradicate diseases with an ever increasing precision.
Share this article
A whole new generation of medicines is about to claim a spot in the spotlight. These drugs will offer treatment or sometimes even a complete cure for diseases that are still chronic or fatal. In recent years, the medical world has already seen a preview of what is yet to come. A striking example is the way a certain treatment may cure hepatitis C within a couple of months. Five years ago, this disease was an incurable viral infection that could have severe and fatal complications.
Breakthroughs with drugs against other ailments appear to be around the corner.
For example, advances in genetic analysis are paving the way for more precise therapies in oncology. The cells in our body mutate frequently. In most cases they either do not pass these mutations on to their offspring, or they die. These alterations are transitory. However, some mutations are passed on and result in different cancers. A new drug was created. It aims to prevent cell mutations in the specific case of TRK (Tropomyosin Receptor Kinase) cancerous mutations. If approved, this therapy would mark a major step toward treatment based on a patient’s or the cancer’s genetic traits, unregarded whether the disease originates in the lung, breast, or elsewhere. Biotech is at the heart of medicine innovation. ‘It is no coincidence that both medicines referred to above have been developed by biotech companies’, says Marie-Laure Schaufelberger, product specialist. ‘This industry is at the heart of medicine innovation.’
No doubt biotech firms are attracting a lot of attention. But what are the risks for potential investors?
While biotech companies garner more attention, investors looking to benefit from the opportunities within this space should be selective. It is extremely risky to buy only one or a handful of companies holding a promising medicine in the pipeline. You need a lot of expertise to invest in this area.
Of every 10.000 new drug discoveries that go into development, only one will enter the market. Even if a medicine makes it into clinical trials, there is still a chance of four out of five that the drug will not be launched, hampered by potential side effects or insufficient demonstration of effectiveness. Despite the fact that some drugs have the potential to grow into blockbusters with massive revenues each year, the growth in the amount of new medicines that make it to the market is under pressure. The number of biotech drugs that have gained FDA1 -approval more than doubled to 45, between 2010 and 2015.2 However, in 2016 only 22 new biotech drugs made it to the market. The bar is getting higher, although companies that succeed in launching a new product look upon a bright future. According to Schaufelberger, Pictet Asset Management regard the way biotech companies are fighting diseases with precision medicine as a good example of how to invest. ‘Our investment strategy in this area is fairly similar. With great precision we seek to identify companies that hold products in their pipeline with the potential to really make an impact in the near future.’ Expert selectivity is key.
The Pre-Contractual Templates (PCT) when applicable, the Key Information Document (KID), as well as the Prospectus must be read before any decision to invest. The Prospectus (in English and in French), the PCT when applicable, the KID (in French and in Dutch), as well as the latest annual and semi-annual reports (in English and French) are available free of charge at our financial Belgian agent CACEIS Belgium S.A., 86C /b320, Avenue du Port, 1000 Bruxelles or at the management company, Pictet Asset Management (Europe) SA, 6B, rue du Fort Niedergruenewald, L-2226 Luxembourg, as well as in digital format at www.assetmanagement.pictet.
The summary of investors rights is available here and in French and in Dutch at www.assetmanagement.pictet under the heading "Resources", at the bottom of the page.
The list of countries where the fund is registered can be obtained at all times from Pictet Asset Management (Europe) S.A., which may decide to terminate the arrangements made for the marketing of the fund or compartments of the fund in any given country.
Claims and Mediation Service: For any claim you can contact Pictet Asset Management (Europe) S.A., Compliance Department, 6B, rue du Fort Niedergruenewald, L-2226 Luxembourg or the Consumer Mediation Service (Service de Médiation pour le Consommateur), North Gate II, Boulevard du Roi Albert II 8 in 1000 Bruxelles or at www.mediationconsommateur.be. The Mediation Service may suggest solutions for the settlement of the dispute. In the absence of agreement on the proposed solutions, each party may bring proceedings before the competent courts.
This marketing material is issued by Pictet Asset Management (Europe) S.A.. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Asset Management (Europe) S.A. has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.
Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.
The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested.
This marketing material is not intended to be a substitute for the fund’s full documentation or any information which investors should obtain from their financial intermediaries acting in relation to their investment in the fund or funds mentioned in this document.
The investment guidelines are internal guidelines which are subject to change at any time and without any notice within the limits of the fund's prospectus.
The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice. Reference to a specific security is not a recommendation to buy or sell that security. Effective allocations are subject to change and may have changed since the date of the marketing material.
Any index data referenced herein remains the property of the Data Vendor. Data Vendor Disclaimers are available on assetmanagement.pictet in the “Resources” section of the footer.
This document is a marketing communication issued by Pictet Asset Management and is not in scope for any MiFID II/MiFIR requirements specifically related to investment research. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any products or services offered or distributed by Pictet Asset Management.
Pictet AM has not acquired any rights or license to reproduce the trademarks, logos or images set out in this document except that it holds the rights to use any entity of the Pictet group trademarks. For illustrative purposes only.
Cookie Policy
This website uses cookies to enhance user navigation and to collect statistical data. To refuse the use of cookies, change your settings or for more information, please click on the following link: Cookies policy. By continuing to browse this website, you accept the use of cookies for the above purposes.
