Some of the smartest money on Wall Street is betting that the hot pace of biotech buyouts still has a long way to run. Andrej Hrovat, who runs the RH&Partner Global Life Science Fund, says investors are likely to see a short term correction in pharma as the mergers continue at a frenetic pace right into 2009. And it's not hard to see what's driving M&As, he adds. Biotech companies are in control of the future of medicine, with emerging cures for ailments as opposed to treatments for side effects.
"The companies from the biotech sector are producing drugs which are directly curing the cause and not just the pain," he tells CityWire. "So you cure the real problem and the old, traditional medicine has to disappear. The future is all about biotech companies and conventional pharma companies are buying biotech firms because they have to--otherwise they will die. However, it will be 10 to 20 years before they over take completely."
Hrovat has acquired a taste for big biotech. He lists his favorites as Gilead Sciences, Genzyme, Genentech and Amgen.
- read the report from CityWire