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Seeking strong revenues in biotech rather than frothy valuations

Ailsa Craig tells Mary McDougall where she is finding strong biotech revenues
Seeking strong revenues in biotech rather than frothy valuations
  • Ailsa Craig has recently been appointed as co-lead manager of International Biotechnology Trust
  • She plans to maintain its existing investment strategy
  • She is adding to more defensive names as valuations at the speculative end of the sector look stretched

Investing in biotechnology is a notoriously risky business. The majority of drugs being researched and developed never make it to market, although when they do the returns can be substantial. And because of the complexity of the products involved, this is a highly specialised field best left to professional investors. 

Around eight UK-listed funds focus on healthcare and two specifically focus on biotechnology equities. International Biotechnology Trust (IBT), the older and more defensive of the two, has made a share price total return of 92 per cent over the past five years, ahead of a 68 per cent rise for the Nasdaq Biotechnology index. Last month the trust announced that Carl Harald Janson, who had managed it since 2013, was stepping down as lead manager. He is now in the process of handing over the trust's management to Ailsa Craig and Marek Poszepczynski, who have become joint lead managers. 

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