A fear of missing out on investing in the firm that develops the first Covid-19 vaccine has led pockets of the healthcare sector to trade on "eye-watering [valuations] reminiscent of the TMT bubble", fund managers have warned.
The current health crisis has shone a light on the healthcare and biotechnology sectors, with more than 1,000 clinical trials, including over 100 potential vaccines, having been registered in the space of three months, according to Dr Trevor Polischuk, co-portfolio manager of Worldwide Healthcare Trust. The Nasdaq-listed share price of Moderna Therapeutics jumped almost two-thirds on news it was the first to reach clinical trials, though it has retraced all those gains since. Appetite from investors to access the sector had already begun to spike before 2020 as political noise surroun...
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