Please ensure Javascript is enabled for purposes of website accessibility

Tekla Healthcare Opportunities (THQ)

Biotech may be down, but it’s not out. Here’s an opportunity to buy a diversified healthcare fund at a discount.

Tekla Healthcare Opportunities (THQ)
from Investor’s Edge

Tekla Healthcare Opportunities (THQ) contains the absolute best of the biotech and health care sector—and it does so at a 13.5% discount to NAV.

Healthcare is in the midst of a dramatic pullback, some say started by Hillary Clinton’s appeal for votes by saying proprietary drug costs are too high. I study this industry and I still don’t believe I’m qualified to discuss how many incredibly expensive dead ends pharmaceutical researchers have to pursue in order to find the one approach and formulation that works. I know that the costs of regulatory approval are incredibly high as is the cost of introducing a new wonder drug and then marketing it. I’m pretty sure Mrs. Clinton isn’t an expert either but it was good for a sound bite. I believe this decline is a tempest in an election-year promise-them-anything teapot, and therefore a fine entry point.

I also believe that biotechnology is the most attractive frontier in medicine where we might find breakthrough cures or palliatives for the most common, and uncommon, afflictions. I do not believe we will stop research in this area and, further, that the biggest deep-pocketed companies will provide the best avenue for us as investors to profit.

THQ has both key healthcare and biotech firms. In fact, the ten largest holdings are: Johnson & Johnson (JNJ-9% of the portfolio,) Gilead Sciences (GILD-8%,) Celgene (CELG-6%,) Biogen (BIIB-5%,) Mylan (MYL-4%,) Pfizer (PFE,) Vertex (VRTX,) Teva (TEVA,) Alexion (ALXN,) and Alkermes (ALKS,) all 3%.

Joseph L. Shaefer, The Investor’s Edge,, 800-253-2088, October 2015