Uncovering Investment Opportunities

Exploring companies that innovate in pursuit of better medicine

COVID-19 Investment Opportunities

We believe the most appealing investments are in companies that are innovating to advance the quality and access of health care. For many companies, the involvement in COVID-19 treatment efforts is already baked into their share price, so the upside may be minimal. Moreover, there is an underlying concern that values are based on hope rather than realistic chances of clinical, commercial success.

“I'm wary of piling into COVID names per se,” says Anne Daub, biotechnology equity analyst. “As the market is hyper-focused on those, you're unlikely to see inefficiencies, as many appear to be valued based on hope rather than unrealistic chances of clinical commercial success. The real question will be as to the sustainability of those products when the epidemic is behind us, which at some point it will be.”

This means we may uncover more upside from strong companies that aren’t necessarily working on COVID-19 response.

Essentially, our investing strategy remains the same, with the same discount rates employed (reflecting hurdle rates rather than market conditions.) We are seeking to identify secular winners, companies that have the best chance of dominating their space, as well as companies with true platform value who can replicate success over and over again.

Devices and Drug Platforms

In therapeutics and medical device sectors, the search is for innovative medicines and products that improve the standard of care and represent important advances in medical practice.

In biopharma, there’s a premium on innovative drug platforms. Here, look for a wider spread and valuation to emerge between high value and low value medicine, as well as meaningful new investment opportunities in the IPO market.

Our Focus Remains the Same: Innovation and Better Medicine

Generally, we continue to invest in treatments for a wide range of conditions that seek to improve the standard of care and meet unmet medical needs, as well as services that improve access to and affordability of health care.

We are confident our emphasis on taking a longer‑term view and identifying investment ideas through fundamental, bottom‑up research should continue to add value for our clients.