Investment process
At Sectoral, our investment process is highly focused and based on primary research into company fundamentals. Our portfolios are built from the bottom up, with an approach that can be categorized as Growth at a Reasonable Price (GARP).
Our investment philosophy is grounded in the belief that financial performance can go hand in hand with driving lasting benefits for society, through improved health and well-being. We invest in biotechnology and pharmaceutical companies developing novel therapies and cures for complex diseases, medical device companies developing innovative technologies that improve patient outcomes, healthcare services and digital health companies that drive greater efficiency within healthcare systems, as well as emerging-market drug and device manufacturers that help increase access and improve affordability of healthcare in developing geographies. We aim to achieve a positive societal impact by investing at least 80% of assets in companies that are tackling unmet medical needs and improving the health and well-being of people around the globe.
Once an investment candidate has been identified, we perform detailed due diligence, which includes management contact and a comprehensive evaluation of the company's scientific, financial, organizational, and ESG strengths and weaknesses. We then conduct various forecasting and scenario analyses, testing a range of assumptions and success factors critical to the company's success. Finally, we generate a realistic valuation range for the potential investment and assess the impact of the investment on the overall risk/return profile of the portfolio.
