Three biotech stocks to buy for healthy long-term returns

Professional investor Marek Poszepczynki of the International Biotechnology Trust picks three biotech stocks with strong balance sheets that look well placed to weather the crisis.

Healthcare is typically immune to a global economic downturn as demand for medications remains relatively consistent. The Covid-19 pandemic, moreover, could give the biotechnology sector a long-term fillip. Biotech will be central to developing both treatments and vaccines to control the disease. The stocks that help society navigate the challenge posed by the virus are likely to perform well; the same will apply to those that manage to maintain their existing drug sales.

Some companies will, however, see their business models come under threat. In particular, contract-research organisations will struggle because many clinical trials will be paused or abandoned. Those with limited cash reserves will also be hit hard as it will be difficult to raise more money.

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Marek Poszepczynski

Marek Poszepczynski has been lead portfolio manager of International Biotechnology Trust (IBT) since 2021.

Having managed IBT since 2013, Marek has over 15 years of life sciences sector experience, including roles at Handelsbanken and Karolinska Development AB. He holds MScs in Biochemistry and Business Management from the Royal Institute of Technology, Stockholm.