Sidestepping danger in the biotech sector

Passive equity products have become popular over the past decade as it has become easier and cheaper to track the performance of an index.

While this is a relatively low cost and straightforward way to access stocks and shares, active management remains the preferred choice for certain sectors. We believe biotechnology is one such example. This industry often experiences high levels of binary risk. Polar Capital: Healthcare headwinds short term in the US The value of a biotechnology company can be significantly affected by the results of a single clinical trial or regulatory decision. For example, in March 2019 Biogen announced it was halting the final phase of clinical trial for a drug known as aducanumab, which w...