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Highlights:
- Biotech and Pharma Lead Gains: Exceptional performance in biotechnology and pharmaceutical stocks boosted returns.
- Weight-Loss Drug Developer Zealand Pharma Shines: Zealand Pharma's value soared by 155% on promising weight-loss drug trials.
- Net Asset Growth Outpaces Benchmark: Trust achieved a 14% net asset value increase versus the benchmark's 9.88%.
Polar Capital Global Healthcare Trust PLC (LSE:PCGH) has significantly outperformed its benchmark over the past 12 months, attributing its success to strong stock selection across biotechnology and pharmaceuticals. Key performers such as weight-loss drug developers and innovative pharmaceutical companies helped the trust achieve notable gains during the period.
Weight-Loss Innovation Drives Growth
The trust highlighted Danish company Zealand Pharma as a standout contributor, with its value rising 155% over the past year. This was driven by promising trials for its weight-loss treatment, pretelintide, which demonstrated fewer side effects compared to competitors such as Wegovy and Mounjaro. Zealand Pharma now accounts for 4.7% of the trust’s portfolio.
Brussels-based UCB was another key performer, doubling in value following the successful launch of its psoriasis drug, Bimzelx, in the US market.
Financial Highlights
The trust reported a 14% increase in net asset value (NAV) per share to 395.05p as of the end of September 2024, up from the comparable period in 2023. Total assets climbed to £479 million from £419 million, surpassing the MSCI AWI Healthcare Index benchmark, which rose by 9.88% over the same period. The trust’s share price discount to NAV also narrowed to 4.9%, reflecting growing investor confidence.
Outlook for Healthcare Investments
Polar Capital expressed optimism about the future of healthcare investments, citing robust fundamentals. The trust emphasized that innovation remains a key growth driver, particularly in areas such as biotechnology and artificial intelligence.
However, it noted that affordability and access to new treatments are critical factors influencing the sector’s earnings potential. The trust’s managers also see opportunities emerging in global markets, with a particular focus on China.
Strategic Focus for 2025
Looking ahead, the trust aims to capitalize on advancements in artificial intelligence and biotechnology while exploring opportunities in emerging markets. By prioritizing innovation and maintaining a diversified portfolio, Polar Capital believes it is well-positioned to sustain its outperformance in the healthcare sector.
With strong stock selection and a forward-looking approach, the trust remains confident in delivering value to stakeholders while navigating the evolving dynamics of global healthcare markets.
