Biotechnology: speciality pharma, generics and suppliers
Geography: North America 90%, Europe 10%
Stajen said one thing that distinguishes his fund from competitors is expertise in biotech names based in Europe.
‘You can find good investments in Europe. What European companies lack in comparison with the US peers is connecting scientific data, clinical development and commercialisation of the product.’
One example of a successful European story in his view is Danish company Genmab, which is an overweight in the fund.
'Genmab discovered a completely new antibody for treatment of multiple myeloma, for which it then struck a development-and-commercialization partnership with Johnson and Johnson. The product, Darzalex, has been on the market for less than two years, and is well on its way to blockbuster status.’
In general the fund manager prefers mid-sized companies that operate in niche areas and target particular therapies so-called pure plays.
‘These companies will be partners or acquisition targets of choice for big corporates as biotech is now the innovation backbone of pharma.’
He added that mid-caps offer attractive risk and reward as they have in general a more diversified and mature product pipeline than typical one-product biotech companies.