Opportunities in the Health Care Sector


As I said, as the industry has shifted attention to developing vaccines and therapeutics, I think we're going to get this virus under control and this is the way we get back to normal, more and better diagnostic tests, multiple therapeutics, multiple vaccines, and the only part of the stock market that's going to give you this as health care. This is where we're going to get the way we get ourselves out of this and then go back to focusing in much more mundane and routine things. Teresa McRoberts : Outside of what's going on with coronavirus, I feel like we've had so much innovation in the last few years. It's almost overwhelming at times. We're seeing exciting things that are coming out of everything from genomics to diabetes treatment to cellular and gene therapy and minimally invasive therapy. You want the most innovative thing when you are sick. We look at things like genomics where we see the ability for a patient who has cancer to have that cancer, that tumor sequenced. And so depending on what the sequence is, that tumor, there may be a drug that can make that tumor melt away. And that's becoming more and more common. There are other areas like diabetes. There's a million and a half people in the in the U.S. with type one diabetes who need insulin injections. There's a little device you can put on your body that's a little bit bigger than a quarter, a little sensor that you insert into your body and the abdomen. And instead of having to prick your finger, if you're a type one diabetic, you can read instead. This little sensor senses what your glucose levels are. You can read those levels on your phone. So if you're a type one diabetic, nobody has to know you have diabetes, they just think you're checking something on your phone and you can use that to control your diabetes in a much more rigorous manner. Share those results with your doctor, have alarms go to a family member if something adverse is happening to you. And it's a tremendous innovation. I could spend the whole hour talking about all the innovations and the different ways that you're seeing innovative things to help patients and help patients take care of themselves better. Dennis Hearns : You spoke of innovation. Where are you seeing the most innovation within health care?

Dennis Hearns : What other areas are you seeing that are contributing to your optimism?

Teresa McRoberts : The other thing that you need if you're going to be really innovative is you need a regulatory environment that's very accommodative, and the FDA has been very, very accommodative over the last few years. Probably six months ago, there was an article on the front page of many papers that said that the death rate from cancer had actually gone down recently, which is unheard of. And why did it go down? It went down because we have more drugs to treat cancer patients because the FDA has been extremely accommodative about streamlining the approval process and helping get those things out. And we're going to see this with the coronavirus. They are trying to figure out how to streamline what they need for a vaccine and a therapeutic. We're in a great environment right now with the FDA being as helpful and as accommodative as it has been. Dennis Hearns : Let's put on your portfolio manager hat now and turn to your health sciences strategy. What industries within the health care sector are your top weightings and why? Teresa McRoberts : Biotech is about a third, a little bit less than that. And pharma is about a quarter or a little more than that. And then I also have some, what I call health care equipment and supplies and tools, and that's about another third of it. With a little bit of providers. The reason I liked the biotech and pharma is, first of all, you play everywhere from the small emerging companies up into the big companies. Innovation isn't just in the small companies, that also happens in the big companies. The big companies can often be better at capitalizing on that innovation.

Made with FlippingBook - Online Brochure Maker