Biotech can still be a value play, says Franklin Templeton's Bowers

Franklin Templeton's Grant Bowers has suggested some US biotechnology companies verge on looking like "value stocks" despite the fierce rally enjoyed by the sector over the past half-decade.

Bowers, manager of the £70m Franklin US Opportunities fund, admits the broader US market looks “broadly fair value” but maintains certain biotech stocks remain particularly attractive. The S&P 500 has risen 87% over the five years to 15 May, compared with a 323% rise for the Nasdaq Biotechnology index. Bowers continues to hold biotech companies such as Celgene, Biogen and Gilead Sciences. “Biotech is attractive if you focus on companies that already have proven products. We were buyers when these stocks were selling off last year,” Bowers said. “Some technology companies are tradin...