Senior fund manager Ailsa Craig of Schroders' International Biotechnology Trust has challenged the perception that biotech firms are inherently risky and unprofitable. In a recent episode of the MoneyWeek Talks podcast, Craig argued that this prejudice may have originated from the failure of many biotech firms listed in London in the past. However, across the Atlantic, many biotech firms have matured and achieved significant market value, with some companies, such as Gliead and Amgen, boasting hundreds of billions of dollars in market capitalisation.
Healthy Profits in UK Listed Biotech Firms
UKPulse Money DeskBiotech firms are no longer seen as high-risk investments. Many mature biotech companies in the US have achieved significant market value, and the industry is poised for growth with big pharma firms facing patent expiries.
- Biotech firms are moving beyond their high-risk reputation
- Mature biotech companies in the US have achieved significant market value
- Big pharma firms are facing patent expiries, creating a tailwind for biotech
Why this matters: This shift in the biotech industry's reputation has significant implications for UK savers, investors, and businesses. The sector's growth potential and reduced risk profile make it an attractive investment opportunity.
What this means for you: What this means for you is that biotech firms may become a more attractive investment opportunity, offering growth potential and reduced risk. UK investors may want to consider consulting a financial adviser to explore the sector's potential.