In 2000, Candriam took an audacious gamble : to invest in biotechnology, a field that was still little-followed by analysts at the time.
Today, after 25 years of innovation, the sector has established itself as a major pillar of the healthcare industry, redefining the way diseases are treated. Over the years, Candriam and our investment team have adapted to these major developments, anticipating trends and identifying the key players shaping the future of medicine.
25 Years of Scientific Breakthroughs: a Revolution in Healthcare
The last two decades have seen unprecedented growth in the biotechnology sector, with tangible successes and innovations that have changed lives and redefined life expectancy for millions of patients.
- Oncology: a Therapeutic Revolution
Once dominated by chemotherapy, cancer treatment is now moving towards therapies targeting specific mutations and towards immuno-oncology, which mobilizes the patient's own immune system to fight the disease. The example of Keytruda, a drug developed by Merck[1], illustrates this evolution, becoming one of the most revolutionary treatments against cancer and among the best-selling[2]. Thanks to these new approaches, survival rates have improved considerably, and patients now benefit from more effective, better-tolerated treatments.
- Virology: Major Advances
HIV, once synonymous with a fatal diagnosis, is now considered a chronic pathology thanks to advances in the pharmaceutical sector. At the same time, hepatitis C is on the verge of being eradicated in the Western world, thanks in particular to advances by Gilead Sciences.
These successes illustrate biotechnology's ability to transform previously incurable diseases into long-term manageable conditions.
- Obesity: an Historic Turning point
For the first time in decades, we are seeing a reduction in the prevalence of obesity[3], with positive implications for heart, kidney, liver and cognitive health. New therapies, backed by extensive research, have proved their effectiveness far beyond simple weight loss, also improving patients' quality of life and reducing the risk of co-morbidities.
- The Genetic Revolution: Precision Medicine
Understanding the origins of diseases has paved the way for revolutionary treatments, such as those developed by Vertex[4] for cystic fibrosis. Thanks to advances in genetics, we are entering an era where personalized treatments are becoming a reality, directly targeting the anomalies at the root of pathologies rather than simply treating the symptoms.
- COVID-19: Unprecedented Mobilization and Responsiveness
One of the most striking medical responses to the pandemic was the speed with which the biotech industry developed vaccines. It took just 63 days to launch the first trials after the virus was identified. Within a year, messenger RNA vaccines were available.
According to an article published in 2022 in The Lancet Infectious Diseases,[5] vaccines prevented more than 14 million deaths during their first year of availability, considerably altering the course of the pandemic.
Outlook for the Next 25 years
If the last 25 years were marked by profound transformations, the years to come could bring equally revolutionary advances.
Among the many avenues to be explored, we're often asked which areas we think could see the most significant developments. Here are three we're following closely, among many others.
- Neurology: a New Horizon
As with oncology 20 years ago, advances in our understanding of brain function and the role of genetics are paving the way for innovative treatments for a wide range of neurological disorders. Alzheimer's, Parkinson's and other degenerative diseases could benefit from major advances that could transform our approach to these complex conditions.
- Cardiometabolism and Obesity: a Revolution in the Making
The impact of new treatments to combat obesity is a real turning point for the healthcare sector, with repercussions that go far beyond simple weight loss. Such advances are reshaping the field of cardiometabolic diseases. Integrating new therapies into the overall management of these pathologies could profoundly alter the medical landscape and improve patient longevity.
- Allergies: a Growing Challenge
The increase in allergies and inflammatory diseases in the Western world is accompanied by a better understanding of the underlying mechanisms - a key advance for stimulating therapeutic innovation. This scientific progress paves the way for new solutions, in a field where demand remains strong and needs still poorly covered. New therapies could emerge, significantly reducing the impact of these conditions on the quality of life for patients.
The Test of Time
For 25 years, our biotech investment strategy has been based on in-depth analysis of scientific trends and major innovations, with the aim of seizing the most promising investment opportunities in this sector.
The natural evolution of our team and its collective expertise reflects this forward-looking mindset, guaranteeing the continuity of a rigorous and dynamic approach. This consistency has been the cornerstone of the strategy's performance since its inception.
The adventure is just beginning.
[1] Securities not in the portfolio
[2] Source : Merck https://www.pearceip.law/2025/02/04/merck-msds-worldwide-keytruda-sales-grow-18-to-us29-5-billion-in-2024/?
[3] Source : US obesity rates drop for 1st time in a decade, with possible help from weight loss medications - ABC News
[4] Example of portfolio companies
[5] Source : The Lancet Infectious Diseases, Watson et al, Vol 22, p 1293
