IN FOCUS: LOXO ONCOLOGY ‘ ON THE FRONT LINE IN THE WAR ON CANCER’
This company is focusing on specific mutations in certain types of cancers.
It’s a niche strategy. Instead of focusing on individual cancers, pancreatic cancer for example, they look for a specific mutation that’s driving the growth of tumours, and they could be in any location: brain, pancreas, lung. Tumours are all, theoretically, very similar in terms of what’s driving their expansion.
Loxo has just had a drug approved and they have a significant partnership with German pharma giant Bayer on that lead programme. But they also have another programme which is producing some exciting data, and a third in development.
The exciting thing is they are treating patients with solid tumours and serious disease and the patients are going on to these drugs and living for years.
Historically we used to think of cancer as a very acute thing, a patient got diagnosed and essentially had a very short time to live.
Here, patients can go on this drug if they have the relevant mutation and can stay on it for years. That’s very positive for the company’s revenue streams. mean that you miss the wood for the trees.
The most important attribute is experience in fund management and the healthcare sector. Understanding the science definitely helps you know the right questions to ask when you speak to the experts.
The negative side of it is that you can get pulled in by a drug you think is going to be enormous, but the next day the Federal Reserve cuts rates and that stock will go down.
Do you have your own money in the fund?
I do, but I’m not a big believer in that conventional wisdom to be honest. I’m of the view that it’s actually better to have sole focus on your clients’ money. Having money in the fund doesn’t change how you think about managing it.
What would you be if you weren’t a fund manager?
I would have loved to have played county cricket. Note: the fund is currently closed to new investors. You can buy shares in a trust run by the team. Ticker: PCGH