The Biotech Sector Back on the Map
The U.S. has been a leader in the medical field of biotechnology, and advances in biotechnology have driven innovation in pharmaceuticals.
With the introduction of the DNA double helix model in the 1950s, molecular biology was born as a discipline. By the 1970s, concepts such as endonucleases, ligases, plasmids, PCR, and sequencing were introduced, including microbial Some of the research within is also becoming clearer. drugs such as Genentech growth hormone and insulin were approved in the 1980s. Peptide drugs entered an explosion period, and in 1975 antibody drug production began to attempt industrialization, with the first antibody drug launched in 1983. . As the technology continues to advance, cutting-edge basic research is also gradually breaking through, and after 2015, the cell-entry technology began to mature, after which the real Gene therapies with significant clinical advantages - CART therapy, RNAi drugs approved in succession, NGB (Next Generation Biotechnology) ) into a tidal wave.
Biotech! In the short span of a few decades, biotechnology has made a big mark on the pharmaceutical industry.
The progress of technology cannot be separated from the backing of capital. We have seen many biotech companies listed on the stock market before they are profitable and their products are still in the research and development stage, and support their projects through financing in the secondary market. The advancement.
And we invest in U.S. biotech companies not only to earn a return on our investment, but also to learn about cutting-edge global advances in life sciences . The field is full of bright scientific minds, with expectations of improved quality of life and longer life cycles.
However, the fundamental analysis of biotech companies is more sophisticated. The accumulation required to invest in this sector is extensive and includes basic medical research, pharmacology, medicine, clinical medicine, financial knowledge and positions in Risk management control skills, each piece of content requires a long period of in-depth study and experience.
Most investors do not have the relevant expertise reserves, nor do they understand the complex and changing regulatory regime of biotechnology. Some of the new drug development stocks in the biotechnology sector can go up 10 times in one day, or drop more than 90% of their market value in one day. . Biotech companies are extremely risky, especially for small and medium-sized companies. Direct collapse and most likely permanent loss of capital. For individual investors, investing in individual stocks in the US biotechnology sector is very risky. With the probability of loss, it's a good idea to invest some money into a fund in the US biotech sector.
Franklin Biotechnology New Frontier Fund A
Tiger Fund Mart has funds in this area: Franklin Biotechnology Discovery A (acc) USD.
Franklin, a long-established asset management group you should be familiar with, has a top-notch U.S. equity research team. Let's take a closer look at this biotech fund.
As of June 29th of this year, the fund had 73 holdings. The holdings include Amgen (AMGN), a global biotechnology giant with a market capitalization of over $100 billion, as well as 23 stocks with a market capitalization of 10 percent. small- to mid-sized biotech companies under $ billion.
Notable among the fund's top 10 holdings is Novavax Pharmaceuticals (NVAX), whose stock is up more than 20 times year-to-date on expectations that it will produce vaccines, and whose market cap is about $4 billion.
This shows that the fund's stock selection not only focuses on the robustness of large companies, but also deeply explores the potential of small biotech companies. Utilize the rich catalysts of U.S. stock biotech companies to generate investment income.
Over the past ten years, the fund has accumulated gains of 344.38%, with an annualized return of 16.08%, outperforming the S&P 500 over the same period .
A careful look at the net worth curve will show us that the biotech sector was riding high between November 2011 and July 2015. The increase has been very substantial. And it's been in turmoil since July 2015 until the end of 2019. The intervening episode was when pharmaceutical mogul Martin Shkreli bought production in 2015 A publicly traded pharmaceutical company that makes staggering profits from exclusive drugs and then dramatically raises drug prices. The American public opinion has paid lip service to Shkreli, and even Hillary has gotten involved, setting off a nationwide campaign against pharmaceutical capitalists The Great Debate.
Five years have passed, and this year the biotech sector has come back into the limelight because of the raging epidemic. The Franklin Biotechnology New Frontier Fund is poised to make a comeback, with a fund gain of 25.96% in the last three months. You can apply for this fund through Tiger Fund Supermarket and let the elite of Wall Street help you select the best stocks in the global biotechnology sector!
