Perspectives Blog

Predicting new drug sales is more art than science

Harlan Sonderling, CFA, Senior Healthcare Analyst | April 14, 2014

…indications beyond its initial one, and can the product win regulatory approval across geographies? We interact regularly with both doctors/scientists and payers; the former on drug mechanisms, side effects, patient need and alternatives, and the ease of administration relative to other therapies; the latter on their interpretation of novelty (whether the drug fills an unmet need or represents a significant improvement, and at what perceived cos…

Biotech’s beneficiaries: How outsourcing is improving the sector and spreading the wealth

Aaron Reames, Senior Equity Analyst | February 24, 2014

…strong financing environment over the past few years, with flows of capital to the sector accelerating recently. This offers unique stability for beneficiaries of a robust biotech balance sheet, creating derivative investment alternatives. Companies supporting the industry will benefit from the capital raised by drug developers. Specifically, we see opportunities in dedicated specialty labs, healthcare systems, contract research organizations (CR…

Gut check: The outlook on fixed income

Colin J. Lundgren, CFA, Head of Fixed Income | February 24, 2014

…co) and persistent outflows. But the underperformance of the sector appeared excessive to us. Any fixed income asset class that has duration warrants some caution, but intermediate- and high-yield muni funds may be attractive alternatives with less rate sensitivity. The headlines are not trivial — especially Puerto Rico — but we do not think the issues are widespread as most state and local finances appear on the upswing. Finally, we would agree…

Building a resilient portfolio

Jeffrey Knight, CFA, Head of Global Asset Allocation | July 16, 2013

Diversification is the single most important tool an investor has to improve their portfolio’s resilience to negative events. Now is an opportune time for investors to look at ways to protect year-to-date gains and prepare for monetary policy changes. Video: Two investment opportunities that may help stabilize portfolios today. Diversification is the single most important tool an investor has to improve their portfolio’s resilience to negative…