Unsubscribe

Confirm you would like to unsubscribe from this list

Remove strategy

Confirm you would like to remove this strategy from your list

Welcome to Thornburg

Please select your location and role to help personalize the site.
Please review our Terms & Conditions

TERMS AND CONDITIONS OF USE

Please read the information below. By accessing this web site of Thornburg Investment Management, Inc. ("Thornburg" or "we"), you acknowledge that you understand and accept the following terms and conditions of use.

Disclaimers

Products or services mentioned on this site are subject to legal and regulatory requirements in applicable jurisdictions and may not be licensed or available in all jurisdictions and there may be restrictions or limitations to whom this information may be made available. Unless otherwise indicated, no regulator or government authority has reviewed the information or the merits of the products and services referenced herein. Past performance is not a reliable indicator of future performance. Investments carry risks, including possible loss of principal.

Reference to a fund or security anywhere on this website is not a recommendation to buy, sell or hold that or any other security. The information is not a complete analysis of every material fact concerning any market, industry, or investment, nor is it intended to predict the performance of any investment or market.

All opinions and estimates included on this website constitute judgements of Thornburg as at the date of this website and are subject to change without notice.

All information and contents of this website are furnished "as is." Data has been obtained from sources considered reliable, but Thornburg makes no representation as to the completeness or accuracy of such information and has no obligation to provide updates or changes. Thornburg disclaims, to the fullest extent of the law, any implied or express warranty of any kind, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement.

If you live in a state that does not allow disclaimers of implied warranties, our disclaimer may not apply to you.

Although Thornburg intends the information contained in this website to be accurate and reliable, errors sometimes occur. Thornburg does not warrant that the information to be free of errors, that the functions contained in the site will be uninterrupted, that defects will be corrected or that the site and servers are free from viruses or other harmful components. You agree that you are responsible for the means you use to access this website and understand that your hardware, software, the Internet, your Internet service provider, and other third parties involved in connecting you to our website may not perform as intended or desired. We also disclaim responsibility for damages third parties may cause to you through the use of this website, whether intentional or unintentional. For example, you understand that hackers could breach our security procedures, and that we will not be responsible for any related damages.

Thornburg Investment Management, Inc. is regulated by the U.S. Securities and Exchange under U.S. laws which may differ materially from laws in other jurisdictions.

Online Privacy and Cookie Policy

Please review our Online Privacy and Cookie Policy, which is hereby incorporated by reference as part of these terms and conditions.

Third Party Content

Certain website's content has been obtained from sources that Thornburg believes to be reliable as of the date presented but Thornburg cannot guarantee the accuracy, timeliness, completeness, or suitability for use of such content. The content does not take into account individual investor's circumstances, objectives or needs. The content is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services, nor does it constitute investment advice and should not be used as the basis for any investment decision.

Suitability

No determination has been made regarding the suitability of any securities, financial instruments or strategies for any investor. The website's content is provided on the basis and subject to the explanations, caveats and warnings set out in this notice and elsewhere herein. The website's content does not purport to provide any legal, tax or accounting advice. Any discussion of risk management is intended to describe Thornburg's efforts to monitor and manage risk but does not imply low risk.

Limited License and Restrictions on Use

Except as otherwise stated in these terms of use or as expressly authorized by Thornburg in writing, you may not:

  • Modify, copy, distribute, transmit, post, display, perform, reproduce, publish, broadcast, license, create derivative works from, transfer, sell, or exploit any reports, data, information, content, software, RSS and podcast feeds, products, services, or other materials (collectively, "Materials") on, generated by or obtained from this website, whether through links or otherwise;
  • Redeliver any page, text, image or Materials on this website using "framing" or other technology;
  • Engage in any conduct that could damage, disable, or overburden (i) this website, (ii) any Materials or services provided through this website, or (iii) any systems, networks, servers, or accounts related to this website, including without limitation, using devices or software that provide repeated automated access to this website, other than those made generally available by Thornburg;
  • Probe, scan, or test the vulnerability of any Materials, services, systems, networks, servers, or accounts related to this website or attempt to gain unauthorized access to Materials, services, systems, networks, servers, or accounts connected or associated with this website through hacking, password or data mining, or any other means of circumventing any access-limiting, user authentication or security device of any Materials, services, systems, networks, servers, or accounts related to this website; or
  • Modify, copy, obscure, remove or display the Thornburg name, logo, trademarks, notices or images without Thornburg's express written permission. To obtain such permission, you may e-mail us at info@thornburg.com.

Severability, Governing Law

Failure by Thornburg to enforce any provision(s) of these terms and conditions shall not be construed as a waiver of any provision or right. This website is controlled and operated by Thornburg from its offices in Santa Fe, New Mexico. The laws of the State of New Mexico govern these terms and conditions. If you take legal action relating to these terms and conditions, you agree to file such action only in state or federal court in New Mexico and you consent and submit to the personal jurisdiction of those courts for the purposes of litigating any such action.

Termination

You acknowledge and agree that Thornburg may restrict, suspend or terminate these terms and conditions or your access to, and use, of the all or any part this website, including any links to third-party sites, at any time, with or without cause, including but not limited to any breach of these terms and conditions, in Thornburg's absolute discretion and without prior notice or liability.

Decline

Give Us a Call

Fund Operations
800.847.0200

FIND ANOTHER CONTACT
Markets

Emerging Investment Opportunities in Cell and Gene Therapies

Paul Ariano, CFA
Senior Equity Research Analyst
10 Aug 2022
5 min read

Cell and gene therapies are biopharma’s next frontier. We see significant investment opportunities in biopharmaceutical manufacturers and biotech companies.

The Evolution of Medical Technology

Throughout history, the intersection between technology and medicine has touched the lives of nearly every person in the world. Whether it’s the development of technology that allows us to look deep inside the body or breakthrough medicines that extend the lives of those with chronic diseases, these advances have not only impacted our lives, but also intensified pharmaceutical drug development over the past few decades.

The earliest drugs of our days, or “conventional medicines,” were first developed in the early 20th century, and were initially made from small molecules that were chemically synthesized in a lab. Aspirin is an example of a conventional medicine that was made by chemically stitching together different small molecules in a lab and has a relatively simple molecular structure. While 20th century pharmaceutical research focused on medications constructed with these “simple” molecular structures, in the last decade biologics have become one of the fastest-growing areas of modern pharmaceuticals.

Biologic drugs are fundamentally different than conventional, small molecule-based drugs. Rather than being synthesized chemically, biologics — as the term suggests — ultimately derive from living organisms (e.g., bacteria, yeast, and even animal tissues or cells) and are considered large molecular drugs. In comparison to the development of conventional drugs, the production of biologic drugs requires a highly complex manufacturing process. For example, the process largely depends on utilizing an organisms’ ability to absorb injected DNA and make large amounts of a specific molecule, usually a protein. The protein is then extracted to become the active ingredient in a biologic drug, such as antibodies or enzymes in vaccine production.

Today, biologic drugs, or “biopharmaceuticals,” are the fastest-growing parts of the pharmaceutical industry. According to McKinsey, biopharmaceuticals generate global revenues of $163 billion, making up about 20% of the pharmaceutical market. While biologic drugs have clearly become the medicine of today, we believe the next frontier in treatments will likely be in cell and gene therapy (CGT).

Figure 1: Clinical Activity Pipeline Is Promising for CGT

Source: Alliance for Regenerative Medicine 2021 Annual Report

The foundational concept of CGT is developing treatments that aim to alter the genetic instruction of a patient’s cells. It accomplishes this by either replacing defective or absent genes with healthy ones, or by changing the way genes are regulated by the body so that defective cells can operate normally. These advances will be game changers because they can help cure or significantly improve the management of diseases that currently have few or no existing treatments. Moreover, the application of CGT can cover a wide range of challenging conditions, such as advanced, late-stage cancer or rare, inherited genetic disorders.

The Future Is in Cell and Gene Therapies

The past five years have been the renaissance period for CGT innovations, and COVID-19 accelerated the pace of these developments even more. According to a 2019 FDA report, in the last two years alone, CGT developers submitted almost 500 applications to the FDA to begin clinical trials. Of those submitted, the FDA anticipates that by 2025 roughly 10 to 20 CGT products will be approved every year. Given the pace of therapies expected to hit the market, it is no wonder that the Alliance for Regenerative Medicine expects CGT industry revenues to grow at 40% CAGR to $30 billion by 2025.

It is clear that CGT is at an important inflection point. Its trajectory is poised to accelerate as newer CGT therapies come to the market to treat a diverse range of health ailments, such as inherited blindness, cancers, blood disorders, leukemia, and multiple myeloma.

We believe CGT is at a tipping point today. Below we highlight two compelling, FDA-approved CGT developments — recent successes that will lay the foundation for the next generation of CGT technologies.

  1. Spinal muscular atrophy (SMA). In 2019, the FDA approved Zolgensma, the first gene therapy approved to treat children under age 2 with SMA, a leading genetic cause of infant mortality when left untreated. SMA is a rare genetic disease caused by a mutation in the survival motor neuron gene (SMN1) that is critical for the functioning of nerve cells that control muscle movement. Children with this rare condition have issues holding their head up, swallowing, and even breathing. Zolgensma delivers a fully functional copy of the SMN1 gene into the target motor neuron cells to improve muscle movement and function.
  2. Lymphoma. In early 2021, the FDA approved Breyanzi, a cell-based gene therapy to treat patients with certain types of large B-cell lymphoma cancer. Each dose of Breyanzi is a customized treatment that uses the patient’s own T-cells to help fight relapsed or refractory disease.

What’s on the Horizon for Cell and Gene Therapy?

The remarkable developments mentioned above are only the tip of the iceberg for the CGT landscape. For a preview of the types of new therapeutic products that may come to market in the near future, we can take a look at the current ongoing clinical trials by indication in Figure 1 above.

As seen above, the clinical pipeline is robust. Over half of the trials focus on oncology, and they are sponsored equally by industry, academic participants, and governments. While historically only a small fraction of these trials is likely to become a FDA approved CGT product, the therapies that do get approved will provide enormous, life-changing benefits to patients who otherwise would have little hope for a cure or a meaningful improvement in their disease. Personalized treatments can reduce the need for chronic therapies and improve the quality of life for many.

Thus, even if a small selection of these clinical trials receives the FDA green light, the implications could still be far-reaching for the healthcare system and its patients. Notably, we anticipate a shift in the incurrence and timing of healthcare costs. For example, a single, successful CGT treatment has the potential to prevent years or even decades of chronic illness. While the initial treatment may come at a much steeper cost, over the longer term the total cost could still be much lower compared to years of expensive ongoing care and treatment.

Identifying Next-Gen Opportunities for Investors

Although CGT is still a relatively nascent market compared with that of biologics, we see tremendous growth opportunities in biopharmaceutical manufacturers and biotechnology companies. Specifically, we view companies that provide the equipment, consumables, or services critical to the development and delivery of therapies as especially attractive. These key players can indirectly benefit when new therapies come into the market without being exposed to the binary risks of clinical trial outcomes. For example, these companies may include:

  • Transportation companies skilled in moving patient samples that are sensitive to temperature or other variables to processing facilities.
  • Manufacturing companies with expanded capability and capacity to produce T-cells.
  • Compliance companies that ensure product safety and quality through oversight and implementation of biomanufacturing processes.
  • Infusion companies providing at-home infusion for patients who can’t go to hospitals.
  • Bioprocessing companies that increase production yields while lowering manufacturing costs.

The outlook for the CGT field is promising due to the robust clinical trial pipeline, the increased rate of FDA approvals, and patient enthusiasm. We believe continued advances in CGT will transform the way we treat diseases and dramatically alter the delivery of healthcare on both the individual and industry levels.

Discover more about:

Stay Connected

Subscribe now to stay up-to-date with Thornburg’s news and insights.
Subscribe

More Insights

The Fed’s Third Mandate: A Tool to Determine When Policy Pivots?

Co-Head of Investments Jeff Klingelhofer argues that the Fed's third mandate may help signal the timing of the next policy shift.

Public vs. Private Credit: How We Assess Both Opportunities

Portfolio Manager Ali Hassan walks us through the potential opportunities and pitfalls of private and public credit, along with what investors should consider.
Global Equity

Beneficiaries of Europe’s REPower Plan

As the European Union rethinks its energy supplies, we believe the shift away from Russian gas may create significant growth opportunities for investors.
Global Equity

Emerging Markets Confront Political Hurdles in the Near Term

Portfolio Manager Josh Rubin discusses significant political events in emerging markets that may impact investors.
International Growth

Blockchain on the Brink of an Investment Revolution

Portfolio Manager and Managing Director Sean Sun explains the paradigm shift around blockchain technology and the opportunities it presents for investors.

‘Pick-your-poison’: Wall Street sell-off resumes

Thornburg Portfolio Manager Sean Sun tells Reuters that increasing geopolitical issues leave investors few places to hang their hats.

Our insights. Your inbox.

Sign up to receive timely market commentary and perspectives from our financial experts delivered to your inbox weekly.
This field is for validation purposes and should be left unchanged.
Feedback