Biotechnology
Investing in the innovation engine of pharmaceuticals and medicine.
Why invest in biotechnology?
Opportunities borne of innovation
Biotechnology is the use of living organism and molecular biology to produce products, typically in the healthcare sector. A surge in the understanding of the human body’s own processes has led to the development of ground-breaking treatments in areas such as obesity, dementia and cancer. Conditions that were previously seen as intractable or demanding a regime of linked therapies are succumbing to elegant, tailored treatments being developed in breakthrough moments.
Leveraging specialised experience and expertise
We have a long history of successfully running dedicated healthcare franchises, having established out biotech strategy in 2001. The healthcare team not only has a strong, science-focused academic background but also brings a wealth of dedicated healthcare and biotech investing experience. They are further supported by the broader global equities team, which provides global analytical and research support.
Applying rigorous standards to ground-breaking opportunities
Finding outperforming companies relies on being able to identify the most compelling new developments across a broad range of disciplines. Our experienced specialist team brings years of healthcare industry and academic knowledge to managing the portfolio, backed up by our global equity analysis capabilities.
Our expertise
Rooted in scientific expertise
We take an active, biotech-concentrated investment approach seeking opportunities wherever they arise across the globe. Our scientific expertise in the biotech field helps us assess the most exciting investment opportunities in a sector where mispricing and price inefficiencies exist.
Risk-aware portfolio construction
We seek to balance investments in growing, defensive commercial franchises with smaller capitalisation innovation opportunities. In this way we can provide exposure to the high growth potential of biotech breakthroughs while grounding the portfolio in established names.
Integrated ESG approach
We bring our depth of experience and breadth of knowledge in responsible investing to assess ESG factors as part of the investment process, reducing exposure to related risk factors.
Team and expertise
Fund manager Cinney Zhang brings a background in biotech research to company research, and is supported by healthcare portfolio managers Chris Eccles and Catherine Tennyson.
Find out more about investing in biotech with BNP Paribas
Our biotech strategy invests in the shares of listed companies, principally in the biotechnology, genomic and medical medical research industry. It can invest in companies of any size, based anywhere in the world, although the portfolio tends to be biased towards the US where most biotechnology companies are based.
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Risk factors
The value of investments may fall as well as rise and you may not get back the full amount invested.
The list below of risk factors is not exhaustive. Please refer to the prospectus & KID/KIID supplement for full product details and complete information on the risks)
- Equity risk
- Smaller companies risk
- Currency risk
- Industry sector or region risk
- Changing technology risk
Important information
Marketing communication. For professional investors only.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.