NETHERLANDS - Institutional investors could increase their weightings in pharmaceutical firms if the industry examines a new study, according to Martin Eijgenhuijsen senior portfolio manager at ABP Investments.
Eijgenhuijsen reportedly made the comments after the conclusions of the Pharma Futures report were published yesterday.
The study urged the industry to shift to more targeted portfolios and to strategically restructure research and development in order to provide future value for shareholders and society.
Eijgenhuijsen reportedly said: “It will be interesting to see whether catalysts might occur to make it attractive to increase our weightings in the pharmaceuticals sector.”
He added: “We would like to see increased R&D transparency and a bigger percentage of biological and innovative, novel drugs and a declining percentage of incremental variation.”
Eijgenhuijsen was also said to have urged the pharmaceutical industry to focus on specific disease areas and integrate different business models as this could potentially create a complementary source of alpha.
His comments came after ABP, together with other institutions, has spent a year engaging with pharmaceutical firms to discuss challenges facing the industry.
As a result, the senior investment officer predicted that pension funds may examine the energy sector next.
He reportedly said: “The model initiated by the Pharma Futures study can be applied to other sectors, particularly those which attract negative publicity such as energy.”
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