Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Andy Acker - Empty Rooms: Investing in Biotech at Janus Henderson (Capital Allocators, EP.274)
Dec 14, 2023
Andy Acker, a Portfolio Manager at Janus Henderson Investors, specializes in healthcare strategies, focusing on biotech opportunities often overlooked by mainstream investors. He discusses the significant advancements in drug development despite challenges faced by biotech stocks. Acker explains his investment process, including idea filtering and assessing management teams. He highlights breakthroughs in gene therapy for severe genetic conditions and shares insights on navigating rising healthcare costs amid evolving market trends. His contrarian view unveils promising green shoots in a seemingly empty room.
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Andy's Path to Investing
- Andy Acker's family has a strong medical background, but he chose investment due to a disinterest in practicing medicine.
- He realized he could make a larger impact as an investor, which has been gratifying.
Biotech's Volatility and Advancements
- Biotech stocks have been volatile despite medical advancements.
- Sequencing the human genome now takes hours and costs hundreds of dollars, compared to 13 years and $3 billion previously.
The 90/90 Rule in Drug Development
- The 90/90 rule highlights clinical and commercial risks in drug development: 90% of trials fail, and 90% of Wall Street estimates are wrong.
- This volatility creates opportunity for investors who can accurately assess the science and business.