Biotech firms 'key to pharma returns'
12 Sep 2008
Those looking to make returns on the pharma sector should look to biotech firms, an expert urges.
Andrej Hrovat, who runs the RH&Partner Global Value fund, makes his comments to CityWire, asserting that big pharma firms continue to "snap up" biotech companies, meaning the industry is due for a short-term correction.
The website notes that Mr Hrovat's investment fund is currently heavily exposed to biotech companies.
He said this is because within ten to 20 years, traditional pharmaceutical companies will no longer be feasible in their current roles.
"The companies from the biotech sector are producing drugs which are directly curing the cause and not just the pain. So you cure the real problem and the old, traditional medicine has to disappear," Mr Hrovat remarked.
Recently, sector reporter Ed Bowsher, writing for CityWire, attended a biotech investment conference and suggested the future for the sector is "bright".
However, he warned many current biotech firms may not achieve longevity.
