Investment Trust Insider on Biotech

Investment Trust Insider on Biotech – inspired by the launch of our biotech news service on QuotedData, I wrote something for Citywire that looks at some of the exciting stories that have been published just in the last couple of weeks.

James Carthew: biotech boom boosts generalist trusts

This week I am returning to the subject of biotechnology there have been developments that could end up having a significant impact on the net asset values of several leading investment trusts with holdings in the sector.

Aside from the dedicated biotech funds, Woodford Patient Capital Trust (WPCT) is well-known for having almost 70% of its portfolio exposed to biotech and healthcare. Edinburgh Worldwide (EWI) has more than a quarter, Mid Wynd International (MWY) around 19%, JPMorgan American (JAM) close to 18% and two BlackRock funds, Greater Europe (BRGE) and North American (BRNA), nearly 16%. Some of these lean more to larger companies but others are making direct investments into smaller, biotech stocks.

As I said a few weeks ago, the world of biotechnology is fraught with danger but, equally, it can create significant value when things go right. Drug approvals can have a dramatic effect on share prices but mergers and acquisitions (M&A) can also be beneficial.