Thank you again for your weekly Big Picture video which continues to provide steady guidance through uncertain times.  You have often referred to opportunities in the biotech sector and, in the last summary, referred to opportunities in the development of anti-cancer treatments.  Are there any specific companies that one could follow?

Eoin Treacy's view

Thank you for this question which may be of interest to other subscribers. The blistering pace of innovation in the biotech sector is resulting in new discoveries being made on a daily basis. The enabling technologies of speedy and detailed genetic sequencing coupled with genetic editing are leading to an accelerating pace of innovation in the sector.

This is happening at a time when the pipelines of established pharmaceutical companies are tiring and even many established biotechnology companies are in need of revitalization. That has resulted in a lively pace of M&A activity over the last 18 months.

The major indices like the Nasdaq Biotechnology Index are dominated by large companies. For example, Amgen (12.64%), Gilead Sciences (9.53%), Celgene (6.95%) and Biogen (6.46%) represent 35.5% of the Index’s total market cap.

Meanwhile it is comparatively small companies that are responsible for much of the sector’s growth and innovation.

Here is a link to all the articles we’ve posted on the immuno-oncology sector. Those posted on June 14th 2017, and October 12th 2017 include some of the most complete reviews of the sector I have performed.

I also recreated the immuno-oncology section from My Favourites in the Chart Library.