The LifeScience sector

The LifeScience sector

The megatrends from an aging population and life style fuels the sector

The elderly as part of global population is growing dramatically. The need for medical treatment increases significantly from the age of 60 years. The population aged 60 or over is estimated to consume more than 80% of the medicines sold today. The figure below shows the proportion of population aged 60 or over in 2014 and estimation in 2050. [Source: UN]

The incidence of cancer rises dramatically with age. Tobacco use, alcohol use, unhealthy diet and physical inactivity are the main cancer risk factors worldwide. The numbers of new cases are expected to rise by about 70% over the next 2 decades (IMS data 2015). Life style induced metabolic syndrome leads to obesity and cardiovascular problems. 592 million people will suffer from Diabetes in 2035, up 55% from today! (IMS data 2015)

A global industry based on successful development of new drugs

Big pharmaceutical companies develop and market the drugs in huge global organizations. Creativity and research outcomes have been poor in the big pharma companies, and biotech companies have been driving the innovation in the industry. Biotech companies sell their molecules to Pharma in global deals, or are being taken out in M&A. Future growth will come from highly innovative companies which develops drugs that address unmet medical needs transforming the treatment of diseases. These drugs will continue to obtain attractive margins.



 

 

Arctic Aurora LifeScience is an equity fund investing in global biotechnology and pharmaceutical companies. The fund is run by former portfolio manager in the Swedish AP3 Fonder, Ulrica Bjerke, as well as Dr. Torbjørn Bjerke, both with 20 years of experience from the market. Arctic Aurora LifeScience was launched in May 2016 with both hedged and un-hedged share classes.

Past performance in Arctic Aurora LifeScience is no guarantee for future returns. Future returns depend on the market, fund manager skill, fund risk level, costs, among others. Performance in the fund may at times be negative and may for this fund vary considerably within periods.