Figthing autoimmune diseases offers investment opportunities
There has been a sharp increase in autoimmune diseases all over the world and the demand for effective therapies is correspondingly high. This creates investment opportunities – an assessment.
Author: Dr. Jürgen Siemer
The global market for drugs that treat autoimmune diseases is expected to soon generate USD 100 billion in annual sales – and continues to show strong growth. The driver is a sharp increase in these diseases. Studies show that every tenth individual in the world is now affected. The frequency of such diseases has significantly increased in recent decades in particular.
In autoimmune diseases, one or more organs are chronically inflamed. The inflammation persists or occurs in regular episodes. During these episodes, the body’s own immune system attacks cells that appear to be healthy and damages or even destroys them. Common autoimmune diseases include rheumatoid arthritis, Crohn’s disease, multiple sclerosis, type 1 diabetes, psoriasis and coeliac disease.
The causes are only partially known
What causes some people to develop autoimmune diseases is the subject of intensive research. In some cases, autoimmune diseases are inherited. It is also known that they can be exacerbated by ageing and environmental influences. These include, for example, infections, nutrition, stress and pollution.
The exact correlations and mechanisms of action, ranging from the causes to the symptoms of the disease, have not yet been fully understood. Consequently, pharmaceutical research cannot yet offer therapies that address the causes. However, it provides medication that regulates the body’s immune response. The symptoms of autoimmune diseases can therefore be controlled or reduced. Thanks to these medications, many sufferers lead much more symptom-free lives.
Medications with blockbuster potential
The success of such medications is exemplified by the drug Humira. Humira is a TNF blocker. These are among the most important innovations in immunology in recent decades. Humira is used to treat severe plaque psoriasis and rheumatoid arthritis and was developed by the American company AbbVie. The drug, with a patent that has, however, expired now, has generated over USD 200 billion in sales so far. This is a world record.
Several medium-sized and larger pharmaceutical companies are competing in the autoimmune disease growth market. We are mainly watching companies that have made the most progress in disease research, while, of course, taking into account the higher risks that specifically affect the industry and the companies. At the same time, we are focusing on companies that seek to identify the triggering factors and interdependencies of autoimmune diseases, from genetics and the environment to the symptoms of those affected.
As an example, we would like to mention the two US companies Vertex Pharmaceuticals and Regeneron Pharmaceuticals. For years, both have been collecting the data required for the analysis of autoimmune diseases. Our expectation is that this approach will increase the productivity and effectiveness of the enormous research investments in the long term. Some of our actively managed portfolios include both Vertex and Regeneron.
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