Aescap invests in one of the most stable and largest growth markets, the life science market. Within the life sciences market, also called ‘biotech market’ we focus on public companies that develop and/or market next-generation medical treatments. Within this market, there are more than 700 companies listed on European and US stock exchanges and active in many different disease areas.
An ageing population, today’s possibility of developing precision medicine as well as evolving cell- and gene-therapy, are a few of the drivers for growth in our industry. Furthermore, Western medicine is also enjoying increasing popularity in emerging markets where many biotech companies face a double digit growth. Together with an ever increasing understanding of human genetics and diseases, and with over 7000 rare diseases still without treatment, we can expect the market for innovative medicines to grow steadily over the coming decades.
Big pharma and biotech companies rely more and more on the acquisition of smaller innovative companies to fuel their product pipeline. The attractive premiums paid in these takeovers is what our sector is known for. The average premium paid over the last few years was over 50% and although we never invest on M&A rumors, the premiums we receive nicely added to the performance of Aescap 2.0.
We believe that to be a long-term successful investor in public innovative medical biotech companies, one should understand all aspects of this complex market. Most of our team members have decades of experience in this sector which results in a deep understanding of the market and the threats and opportunities for individual companies. Backed by an extensive network of medical and industry professionals, we invest based on a high conviction which is known to be one of the key drivers for out-performance.