Swiss investment firm Sectoral Asset Management has launched a new biotech strategy, the Variopartner SICAV – Sectoral Biotech Opportunities Fund with initial assets of over $50m (€44.1m).
The fund invests in innovative biotech companies and focuses on small and mid caps. Its portfolio consists of 30 high conviction positions and the stock selection applies a bottom-up approach.
Sectoral emphasised that medical innovation is developing fast, particularly in the areas of cancer and gene therapy.
The manager recalled 2015 has been a record year in terms of new product launches with 45 new drugs having been approved by the FDA.
Sectoral AM sets a fund size target comprised between $300m (€264.4m) and $500m (€440.7m).
Part of the starting fund assets were raised by Bonhôte Fund Solutions, an investment platform including Bordier & Cie as well as other institutional partners.
Michael Sjöström, CIO and co-founder of Sectoral, said : “This new fund is clearly differentiated from large traditional biotech funds and ETFs”.
Mina Marmor, portfolio manager of the Sectoral Biotech Opportunities Fund, added: “After the recent correction, biotech valuations have retreated to levels not seen in five years.
“Given the strong pipeline of the industry, a favourable regulatory framework for drugs targeting rare or severe diseases and the growing demand for innovative drugs, the industry is poised to deliver attractive returns to investors.”