Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money

79% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FREE EBOOK

How to Day Trade Stocks & Indices

  • Place your first trade
  • Identify 9 chart patterns
  • Pro strategies step-by-step

You'll also receive our newsletter and other Opto emails in accordance with our privacy policy.

Columnists

Janus Henderson portfolio manager on the biotech firms waging war

The recent rebound in financial markets suggests investors are optimistic about our ability to combat COVID-19.

Reaping the rewards are those healthcare companies that are working to develop therapies and diagnostic tests for the disease, with the sector outperforming the broader market.

Gilead Sciences’ [GILD] antiviral therapy, remdesivir, for example, is now in clinical trials, with results expected in May, while Abbott [ABT] has rolled out point-of-care diagnostic testing and lab-based antibody testing over the past month.

Firms such as Eli Lilly [LLY], that refill medicines by mail or provide life-sustaining treatments, including insulin, are also seeing steady demand.

Healthcare companies have many tools to resist and attack the virus, from repurposing existing antivirals to developing synthetic antibodies to fortify our immune systems.

Still, it takes time for clinical trials to test the efficacy and safety of these potential therapies. Even then, companies will have to expand manufacturing capabilities and distribute treatments broadly.

“Still, it takes time for clinical trials to test the efficacy and safety of these potential therapies. Even then, companies will have to expand manufacturing capabilities and distribute treatments broadly”

 

Aggressive testing and monitoring can help contain outbreaks as we wait but, so far, many countries are coming up short.

By 27 April, only 5.4 million tests had been conducted in the US, representing little more than 1% of the total population, according to the  COVID Tracking Project.

Healthcare companies are certainly not immune to the ravages of the pandemic. Social distancing is disrupting clinical trials and new drug launches, and could delay regulatory approvals.

The number of medical procedures performed is dropping substantially, weighing on the stocks of medical device makers.

For now, we think investors should brace for continued volatility until an approved vaccine, widespread testing, game-changing therapeutics – or a combination of all three – support the case for further optimism.

“For now, we think investors should brace for continued volatility until an approved vaccine, widespread testing, game-changing therapeutics – or a combination of all three – support the case for further optimism”

 

Andy Acker is a portfolio manager at Janus Henderson Investors, responsible for managing the Global Life Sciences and Biotechnology strategies. He joined Janus in 1999 as a research analyst, and has a degree in biochemical sciences from Harvard University.

Continue reading for FREE

Join the 30,000+ subscribers getting market-moving news every week.

Written by

Free ebook

Tricks of the trade: 7 interviews with the world’s top traders

Get it now

Disclaimer

Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

Related articles