Lower health insurance premiums, less government interference in the healthcare system, lower costs for medical treatment, more competition and lower tax rates - the promises Donald Trump made during his presidential campaign are now the daunting challenges he must overcome.
The failure of Congress's first attempt to repeal the Affordable Care Act revealed that it won't be easy for Trump to quickly change a system as complex as the healthcare system in the US.
From a political and social perspective, the aim is to make healthcare in the US more affordable and more efficient. From an investor's standpoint, the challenge is correctly assessing the future path of healthcare policy under the Trump administration. New solutions and models for pricing drugs offer rewards, but carry risks as well.
BB Biotech's investment strategy reflects this change in US healthcare policy. Breaking down its portfolio by therapeutic area, oncology was the single largest therapeutic area accounting for 39% of the portfolio investments, followed by orphan diseases (23%) and metabolic disorders (11%, all data as of Dec. 31, 2016).
With this strategy, BB Biotech is well positioned to reap strong rewards from the ongoing change in drug reimbursement practices. Thirty three of the group's portfolio investments are expected to make announcements on product approvals and clinical trials in 2017 which will move their stock prices and, consequently, drive the performance of the BB Biotech's portfolio and share price.
For more information, please contact:
All forward-looking statements included in this release are made only as of the date of this release and BB Biotech and its directors and officers assume no obligation to update any forward-looking statements as a result of new information, future events or other factors.