Biotechnology: Investing in cures
With the Covid-19 pandemic, biotechnology and Big Pharma are back in the spotlight. Investors in life sciences are essentially backing developments that could determine the future of the human race, but what does investing in ‘cures’ mean from a cashflow point of view?
The Genome Revolution, a 2018 Goldman Sachs report, states that “the potential to deliver ‘one shot cures’ is one of the most attractive aspects of gene therapy”.
It goes on to say that “such treatments offer a very different outlook with regard to recurring revenue versus chronic therapies”.
Everybody ultimately wants to see cures for serious life-threatening illnesses, but the underlying science is not that easy, says David Pinniger, fund manager on investment firm Polar Capital’s healthcare team.