HEALTHCARE
Investing in better outcomes
- The Fund's investments in equities are subject to equity market risk due to fluctuation of securities values.
- Investments in the Fund involve general investment, currency, hedging, economic, political, policy, foreign exchange, liquidity, tax, legal, regulatory, securities financing transactions related and small/ mid-capitalisation companies related risks. In extreme market conditions, you may lose your entire investment.
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- The Fund may invest in financial derivatives instruments for investment and efficient portfolio management purposes. This may involve counterparty, liquidity, leverage, volatility, valuation, over-the-counter transaction, credit, currency, index, settlement default and interest risks; and the Fund may suffer total or substantial losses.
- The Fund's investments are concentrated in companies (may include small/ mid capitalization companies) with life sciences orientation and may be more volatile.
- Investors should not only base on this document alone to make investment decisions and should read the offering documents including the risk factors for further details.
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Healthcare is entering a golden age of innovation, with genetic sequencing and other advance technologies enabling a rapid pace of medical breakthroughs.
At the same time, demand for care is growing as populations age and unmet medical needs persist. These dynamics are creating sizable growth opportunities – with potentially positive outcomes for patients and investors alike.
The opportunities for investors:
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New sources of growth Drugs targeting specific biological characteristics have the potential to dramatically improve patient outcomes, reduce costs, and improve the odds of regulatory approval. Over the past two decades, the number of novel drugs approved by the FDA over five-year periods has doubled, and in 2021, sales of blockbuster drugs exceeded €374.8 billion, up 70x since 2000.1 |
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Opportunity for digitisation Technology is transforming almost every aspect of healthcare, from drug research and surgical practices to real-time patient monitoring. But we are still in the early stages of this digital shift; the global market for minimally invasive robotic surgeries, for example, is expected to reach €21.9 billion by 2030, up from €8.1 billion in 2020.2 |
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Favourable demographics Healthcare spending as a percentage of GDP is rising as populations age, particularly in large developed economies. In the US, people over age 65 spend nearly 3x more on healthcare than younger adults, and through the end of the decade, 10,000 people per day in the US will turn 65.3 Between 2015 and 2050, the proportion of the world’s population over 60 will nearly double from 12% to 22%.4 |
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Growing investment Private and public investment in healthcare innovation is gaining urgency. Over the last decade, venture capital investment in European biotech and healthcare firms has increased more than 3x, and in the US, more than 7x.5 |
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Defensive characteristics In addition to offering growth opportunities, the healthcare sector has also typically held up better than the broader equity market amid downturns. Looking at declines of 15% or more in the MSCI World IndexSM since 2000, the MSCI World Health Care IndexSM captured just 47% of losses, on average.6 |
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The opportunities for investors:
A differentiated approach to healthcare investing
Janus Henderson's Healthcare Team seeks to invest in companies worldwide that are addressing high, unmet medical needs and providing efficient and cost-effective healthcare solutions. The healthcare sector, with its rapid growth and high complexity, offers opportunities for differentiated research. Understanding the science and the business behind new therapies and having a disciplined investment process are pillars of our approach.
The Fund is designed to:
Identify healthcare’s best scientific and commercial opportunities
Focus on small- and mid-cap biotech companies, aiming to maximize the sectors growth potential
Mitigate downside risk through a proprietary value-at-risk framework
Why invest in healthcare with Janus Henderson?
- Over 100 years experience
A dedicated team of 9 members with more than 100 years combined of healthcare investing experience - Sector experts
Our team of experts includes three PhDs and one MD. - A strong track record
Over the long term, a proven ability to navigate the gap between healthcare’s top- and bottom-performing stocks – historically, the widest of any sector – by staying focused on risk/reward. - A long-term approach
The quality of our investment team, the depth of our research, and our disciplined long-term approach set us apart in pursuing superior risk-adjusted returns in healthcare.
Past performance does not predict future returns. The value of an investment and the income from it may go down as well as up and you may lose the amount originally invested.
Exploring the science – and business – of biotech
The fund seeks to capitalise on biotechnology’s rapid growth and innovation by focusing on companies the team believes can “change the practice of medicine.”
Meet the team
Portfolio management
Andy Acker, CFA
Portfolio Manager
(27 years of experience)
- Leads the firm's Health Care Sector Research Team
- Joined Janus in 1999 as a research analyst focused on biotechnology and pharmaceutical companies
- B.S. degree in biochemical sciences from Harvard University, graduating magna cum laude and Phi Beta Kappa
- MBA with honours from Harvard Business School
Daniel Lyons, PhD, CFA
Portfolio Manager
(23 years of experience)
- Joined Janus Henderson in 2000
- Focused on biotechnology and life science tools sectors
- PhD in immunology from Stanford and postdoctoral research with a Nobel laureate
- Bachelor’s degree in biochemistry and chemistry from Rice University, graduating magna cum laude
Agustin Mohedas, PhD
Portfolio Manager,
Biotechnology Strategy
(10 years of experience)
- Joined Janus Henderson in 2019
- Bachelor of science degree in biomedical engineering from Texas A&M University, graduating summa cum laude.
- PhD in medical engineering and medical physics from the Harvard-MIT Program in Health Sciences and Technology.
- His PhD research focused on drug development for a rare genetic disease, resulting in multiple patents and publications.
Andy Acker, CFA
Portfolio Manager
(27 years of experience)
- Leads the firm's Health Care Sector Research Team
- Joined Janus in 1999 as a research analyst focused on biotechnology and pharmaceutical companies
- B.S. degree in biochemical sciences from Harvard University, graduating magna cum laude and Phi Beta Kappa
- MBA with honours from Harvard Business School
Daniel Lyons, PhD, CFA
Portfolio Manager
(23 years of experience)
- Joined Janus Henderson in 2000
- Focused on biotechnology and life science tools sectors
- PhD in immunology from Stanford and postdoctoral research with a Nobel laureate
- Bachelor’s degree in biochemistry and chemistry from Rice University, graduating magna cum laude
Agustin Mohedas, PhD
Portfolio Manager, Biotechnology Strategy
(23 years of experience)
- Joined Janus Henderson in 2019
- Bachelor of science degree in biomedical engineering from Texas A&M University, graduating summa cum laude.
- PhD in medical engineering and medical physics from the Harvard-MIT Program in Health Sciences and Technology.
- His PhD research focused on drug development for a rare genetic disease, resulting in multiple patents and publications.
Broader healthcare team
Broader healthcare team
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Source: Janus Henderson Investors, as of 31 December 2022.
Note: Years of experience refer to financial industry experience. See individual biography pages for complete biographies.
Resources
Resources
Global Life Sciences Fund
Horizon Biotechnology Fund
Thematic Investing
Access transformational change with thematic investing. Thematic investing enables investors to benefit from the powerful megatrends that are disrupting and shaping the future, unlocking the potential for stronger and more consistent returns.
Footnotes
1 Food and Drug Administration (FDA), Janus Henderson, ISI Research. Data as of 31 December 2021. Blockbuster drug = > €900 million in annual sales.
2 BioSpace, “Minimally Invasive Surgery Market Size to Reach $23.4 billion by 2030,” 2 May 2022.
3 U.S. Census Bureau and Centers for Medicare & Medicaid Services. Spending data based on figures for 2014.
4 World Health Organization, “Ageing and health,” 1 October 2022.
5 Invest Europe, Q4 2021 PitchBook-NVCA Venture Monitor. Data as of 31 December 2021.
6 Janus Henderson Investors, FactSet. Data as of 31 December 2022.