May 2022 / VIDEO
Big Pharma: Navigating a Golden Age of Innovation
Investors should focus on trends in the duration and diversity of a large-cap biopharma company’s cash flows
- Investors should focus on trends in the duration and diversity of a large-cap biopharma company’s cash flows.
- Oncology and immunology, along with Alzheimer’s disease and obesity, are areas where we see a strong overlap between innovation and commercial potential.
- We see the potential for a sharp increase in biopharma mergers and acquistions. This trend is likely to focus primarily on small to mid-sized targets.
I am optimistic that we are at the beginning of a golden age of drug discovery, fueled by the technological and scientific advances of the past few decades. Amid all this change, however, my framework for evaluating large-cap biopharma companies remains consistent. The key, I believe, is viewing these innovations through a commercial lens and focusing on trends in the duration and diversity of a company’s cash flows.
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May 2022 / ASSET ALLOCATION VIEWPOINT
May 2022 / MARKETS & ECONOMY