Biotechnology companies are seeing record levels of innovation. Approvals of new medicines have held up despite staff turnover at the US Food and Drug Administration (FDA) regulator and large pharmaceutical companies, facing patent expiries on many of their biggest products, are acquiring biotech companies to replenish their pipelines. The catch is that the sector rewards specialist knowledge more than most others: a single trial result can move a share price by half in a day. The Biotech Growth Trust gives investors focused exposure to this theme by investing primarily in biotechnology.
We invest from the bottom up, favouring biotechnology companies developing first-in-class or best-in-class medicines, with a tilt towards small and mid-sized companies where much of the sector’s innovation now originates. Our high active share (meaning that our holdings significantly differ from the benchmark index) means that our best ideas populate the portfolio, which is essential for navigating biotech’s fast-moving, event-driven landscape. Below are three examples of our holdings, illustrating the breadth of our approach.
Three smaller biotechnology companies to consider
United Therapeutics (Nasdaq: UTHR) is an established player built largely on treatments for pulmonary arterial hypertension, a rare form of high blood pressure in the lungs, and pulmonary hypertension associated with interstitial lung disease (PH-ILD). It remains one of the most profitable firms in biotech. The company is now expanding into the much broader fibrosis market. Its lead product, Tyvaso, succeeded in late-stage trials in idiopathic pulmonary fibrosis (IPF) and the firm is expecting a US regulatory decision in spring 2027. If approved, it would be the first inhaled anti-fibrotic treatment for the disease. A legal settlement requiring that a rival withdraw from the market clears the path for the Tyvaso franchise to resume growth ahead of the IPF launch. The IPF launch, a return to growth in the company’s core franchise and continued strong cash generation should mark an important inflection point.
Start your trial of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
In October, Vaxcyte (Nasdaq: PCVX)reported positive Phase III trial results in adults for its pneumococcal vaccine VAX-31, which surpasses the current market leaders, Pfizer’s Prevnar 20 and Merck’s Capvaxive, in strain coverage. Historically, this is a winner-take-all market where breadth of coverage decides the winner. The next milestone is Phase II data for the vaccine in infants, expected in the first half of 2027. Positive results would open the door to the paediatric market, which makes up the majority of the market opportunity. There is therefore a clear trajectory towards leadership in a pneumococcal market valued at more than $8 billion annually. It would also be an attractive asset for a large pharmaceutical company looking for vaccine exposure.
Palvella Therapeutics (Nasdaq: PVLA) is developing a topical gel form of rapamycin, an established immunosuppressant, for microcystic lymphatic malformations (mLM), a rare, lifelong condition that can cause persistent leaking, bleeding and infection. With no currently approved therapies and an estimated US patient population of 30,000, Palvella is targeting a launch of the drug in the first half of 2027 if approved. Building on positive Phase II trial results, Palvella is also starting a Phase III trial in cutaneous venous malformations (cVM), with data expected in 2028. Palvella is a first mover in an untapped market with big potential.
This article was first published in MoneyWeek’s magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Investment in the UK build-to-rent sector reached £3bn during the first half of 2026, marking the second-strongest start to a year on record, according to figures from JLL. The total represented a 28% increase compared to the same period in 2025 and stood 6% above the five-year average. It was only the second time investment…
One of the world’s largest investment firms says that only tech companies are getting a share of the AI pie. In an economic analysis published on Saturday, Apollo Global Management said that while the Magnificent Seven — a group of established tech companies that includes Nvidia and Meta — are seeing revenue growth during the…
European payments group Nexi and Agentic Commerce Optimization specialist ReFiBuy have joined forces to help merchants stay visible as shoppers lean more heavily on AI assistants. Announced on 17 September 2026 from Milan and Raleigh, the collaboration aims to keep product catalogues ready for evaluation, comparison and recommendation by the software agents now sitting between…
Wintermute has boosted its US presence by becoming a FINRA registered broker dealer. Wintermute was founded in London in 2017. A US office was established last year (2025). The company is a crypto-native market maker, operating across centralized exchanges (CeFi), DeFi, and moving more into TradFi. Wintermute USA aims to provide liquidity for both national…
While tax-exempt ratios have cheapened somewhat, September typically has been a “challenging month” for munis, though last year was an exception, said Barclays strategists led by Mikhail Foux. Supply remains elevated this week as the technical environment becomes more challenging. Processing Content Issuance is estimated at $17 billion this week, with five states issuing over…
