March, More of the Many Moments
The month started with the long anticipated Novo Nordisk capital market day. While the extensive information
on the future of weight loss drugs did not disappoint the market, a more differentiated view will be needed in
the future as also indicated by the US federal agencies’ update on the reimbursement of these drugs. Macro-financial
news continued to be supportive of cyclical market sectors. In healthcare this was reflected by solid
performance of the higher-growth Tools subsegment, which is among the leading groups in terms of year-to-date performance.
Chinese CDMO worries
This month saw further discussion of proposed US legislation aimed at decreasing business of US entities with contract development and manufacturing (CDMO) companies based in China. This proposed bill is still far from being passed into law and is but the most recent of several failed attempts to curb US CDMO use.
Nonetheless it has already made waves, with some industry participants signalling that the mere uncertainty about the implementation of such a bill was enough to re-evaluate contracting options. This highlights the global nature of the biopharma value and its exposure to geopolitical tensions.
Liver disease progress
The US FDA approved the first drug to treat nonalcoholic steatohepatitis (NASH), a disease in which the liver stores excess fat. Over time, this leads to tissue scarring, inflammation and progressive loss of liver function. NASH is a relatively common disease, affecting ca 6-8 million people in the US or ca 3% of adults. The prevalence is rising with the increasing number of diabetic and obese adults as both conditions are the main risk factors of developing NASH.
After decades of clinical trial failures in this indication, this approval demonstrates that although innovation can be a slow and frustrating process, solutions can almost always be found.
Performance Overview
Top 5 in March:
- Dexcom Inc 21% New product, peer data
- Bachem Holding AG 20% Earnings
- Exact Sciences Corp 20% Easing competitive fears
- Moderna Inc 16% Start of new study
- Lonza Group AG 15% Guidance raise and deal
Bottom 5 in March:
- Asahi Intecc Co Ltd -16% No specific news
- Zoetis Inc -15% Earnings
- Kyowa Kirin Co Ltd -10% No specific news
- EBOS Group Ltd -9% No specific news
- Terumo Corp -7% No specific news
| Healthcare | Medtech | Services | Pharma | Biotech | Tools | World | |
| 1M | 2.4% | 2.3% | 2.8% | 2.1% | 2.8% | 2.5% | 3.2% |
| 3M | 7.5% | 8.6% | 2.3% | 10.0% | 3.2% | 9.2% | 8.9% |
| YTD | 7.5% | 8.6% | 2.3% | 10.0% | 3.2% | 9.2% | 8.9% |
| 12M | 13.3% | 14.0% | 13.8% | 17.7% | 7.5% | 2.9% | 25.1% |
Source: Bloomberg Finance L.P., Kieger
Chart of the Month
Cystic Fibrosis is a genetic disorder which results in the production of thick mucus which clogs airways and leads to respiratory infections. In the 1950s, the life expectancy of people with cystic fibrosis was tragically low, with many affected individuals not surviving beyond childhood. Thanks to significant advancements in medical care, early diagnosis, and targeted treatments, the life expectancy of people with CF has dramatically improved.
Check out our video on this subject here.
This news article has been issued through Kieger AG and is for distribution only under such circumstances as may be permitted by applicable law. This document is for information purposes only and does not constitute an offer. Past performance is not a reliable indicator of future results. The details and opinions contained in this document are provided by Kieger without any guarantee or warranty and are for the recipient’s personal use only. All information and opinions contained in this document are subject to change without notice. This document may contain statements that constitute “forward looking statements”. A number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. Data source: Statestreet / Factset.
