The Covid-19 pandemic has put biotechnology back in the spotlight.
Michael Johnson discussed what investing in ‘cures’ mean from a cashflow point of view in a recent article for Funds Europe by Alex Rolandi.
He explains how it is difficult to predict what the potential for one-off cures would mean for investors seeking sustained cashflow, stating “We don’t yet know whether a possible Covid vaccine, for example, will be a one-off or require everyone to have vaccinations each and every year”.
He goes on to share: “In this sector very often a company that is able to pioneer a first is able to come out with a second, more profitable product. The first product may not even generate that much of a return, but will have succeeded jumping a research or regulatory hurdle of some kind.”
Read the full article here.