Now is "an exciting time" to be investing in the biotech sector, because of the wave of innovation in the pipeline and the historically low P/E ratios available, according to Geoff Hsu of OrbiMed Advisors, the manager of the £70m London-listed Biotech Growth Trust PLC (BIOG)'.
Not only are biotech stocks trading at forward P/Es of just 18x, but their Price/Earnings to Growth (PEG) ratios are below those of the larger pharmaceutical companies, something "we've never really seen before", he explained. Hsu sees particular value in the large cap biotech stocks. "We think they are a bargain right now and investors are beginning to realise that the intrinsic fundamentals are strong," he said. While the large cap biotech companies comprise just over a third of BIOG's value, the host of emerging companies are also of great interest. "We like to hold companie...
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