Catalysts Strengthen Our Outlook for Healthcare

Early Signs of Exciting Innovation Cycle.

At the end of August, we continue to see evidence of the transformative innovation cycle in healthcare. Two key catalysts in particular confirm the advancement and validation of CAR-T/TCR and new therapies that harness the immune system.

With healthcare undergoing a transformative innovation cycle, we believe it is key to do research specifically on the emerging technologies and resulting therapies and to identify companies further along the development path with strong therapy pipelines. These companies should benefit from the secular tailwind of a rapidly aging population and the need for innovative approaches to cancer and other age-related diseases.

Notably, these types of companies are available to public-market investors. In contrast to other sectors, particularly technology, biotechnology companies must come to the public markets sooner to fund the huge costs of drug development and regulatory approval. Most of the upside can be experienced later in a company’s lifecycle, and—importantly—after much of the uncertainty around the technology and management team has been has de-risked.