Fund of the week: focusing on the funds of the future

The Biotech Growth Trust fund focuses on mid-cap companies that don't need regular infusions of cash - and hopes to identify which companies will make it to profitability.

You'd think the biotech industry would be worried right now. If American lawmakers push through a 'follow on' biologics bill, biotech firms will be forced to compete with generic versions of the drugs it took them years to develop, pushing down prices. But it's not as easy as that. Biotech drugs don't just "come about by throwing chemicals in a test tube", says Geoffrey Hsu, manager of the Biotech Growth Trust (LSE:BIOG).

Made from living cells, these drugs are "difficult to make, so if not done exactly right can result in different reactions, clinical profile and efficacy". So even if the bill is passed, there's no guarantee competitors will be able to create generic rivals rapidly. That means biotech should continue to thrive, just as it did in 2008.

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Amgen Inc13.6
Gilead Sciences Inc11.7
Genentech Inc8.0
Celgene Corp6.4
Vertex Pharmaceutical5.3
Genzyme Corp4.9
Biogen Idec Inc4.7
Allos Therapeutics4.2
Onyx Pharmaceuticals3.7
Infinity Pharmaceuticals Inc3.6
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