Past performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.
For many people, the perception of the big pharmaceutical companies is not particularly positive. At worst, they are felt to be profiteering by pushing medications we do not need, at prices we (or our healthcare systems) cannot afford.
In the Liontrust Sustainable Investment team, we have a more nuanced view; we believe that, while there are certainly instances of very poor practices, there are also examples of incredible advances in our ability to treat unmet medical needs. Improved health is one of three mega trends we look to invest in, with 22 positive sustainability trends sitting within them which help make our economy healthier, cleaner and safer
We are looking for companies whose products or services help promote innovation within healthcare, either by coming up with new, more effective ways to treat diseases, by providing essential equipment or services for biotechnology research, or through software to help make treatments more effective.
Our approach to biotechnology and pharmaceutical companies is to identify those that have a proven track record in researching and developing the most significant advances in treatments so that we can live long and healthier lives.
Consider the improvements that we have seen over the last three decades in cancer survival rates. In September 2025, the Global Burden of Disease study in The Lancet showed a broad picture of steady improvement.
Disability-Adjusted Life Years (DALYs) is a disease burden metric which measures the number of years living with disability or lost due to early death. This has seen improvement across the board for the three largest cancers, with DALYs falling 27.5%, 21.2%, and 58.4% since 2010 for lung, colon and stomach cancer respectively.
This improvement has been driven by several key interventions: immunotherapy such as CAR-T, where immune T-cells are modified to target the cancer; targeted drug therapies such as Herceptin for breast cancer; early screening and detection especially colonoscopy and mammogram programmes; and then combination therapies which use multiple approaches to target the cancers.
There is good reason to believe that this rate of improvement will continue if not accelerate as the science to diagnose and treat cancers advances. At a recent conference on the future of technology, Bernstein analysts highlighted how new classes of drugs called antibody drug conjugates and bispecific antibodies are more effective at killing rogue cancer cells. The leading large pharmaceutical companies in this area are AstraZeneca and Roche, both of which we hold in portfolios. Roche is heavily focused on cutting-edge breast cancer drugs, while AstraZeneca invests in lung cancer and immunotherapies.
But perhaps the best way to enable this critical innovation is through the companies providing the tools and manufacturing capability. Thermo Fisher Scientific – another of our holdings – is a great example. It provides the leading-edge equipment that research laboratories need to discover, analyse, and test innovative new molecules for drug discovery. The pace of change is not letting up, so neither will demand for their services.
While we should remain critical about the activities of some actors in the pharmaceutical sector, we should also celebrate and back those companies that are genuinely developing treatments that give people many more years of healthy life.
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KEY RISKS
Past performance does not predict future returns. You may get back less than you originally invested.
We recommend this fund is held long term (minimum period of 5 years). We recommend that you hold this fund as part of a diversified portfolio of investments.
The Funds managed by the Sustainable Investment team:
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Are expected to conform to our social and environmental criteria.
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May hold overseas investments that may carry a higher currency risk. They are valued by reference to their local currency which may move up or down when compared to the currency of a Fund.
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May hold Bonds. Bonds are affected by changes in interest rates and their value and the income they generate can rise or fall as a result; The creditworthiness of a bond issuer may also affect that bond's value. Bonds that produce a higher level of income usually also carry greater risk as such bond issuers may have difficulty in paying their debts. The value of a bond would be significantly affected if the issuer either refused to pay or was unable to pay.
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May encounter liquidity constraints from time to time. The spread between the price you buy and sell shares will reflect the less liquid nature of the underlying holdings.
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May invest in smaller companies and may invest a small proportion (less than 10%) of the Fund in unlisted securities. There may be liquidity constraints in these securities from time to time, i.e. in certain circumstances, the fund may not be able to sell a position for full value or at all in the short term. This may affect performance and could cause the fund to defer or suspend redemptions of its shares. May invest in companies listed on the Alternative Investment Market (AIM) which is primarily for emerging or smaller companies. The rules are less demanding than those of the official List of the London Stock Exchange and therefore companies listed on AIM may carry a greater risk than a company with a full listing.
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May, in certain circumstances, invest in derivatives but it is not intended that their use will materially affect volatility. Derivatives are used to protect against currencies, credit and interest rate moves or for investment purposes. The use of derivatives may create leverage or gearing resulting in potentially greater volatility or fluctuations in the net asset value of the Fund. A relatively small movement in the value of a derivative's underlying investment may have a larger impact, positive or negative, on the value of a fund than if the underlying investment was held instead.
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Do not guarantee a level of income.
The risks detailed above are reflective of the full range of Funds managed by the Sustainable Investment team and not all of the risks listed are applicable to each individual Fund. For the risks associated with an individual Fund, please refer to its Key Investor Information Document (KIID)/PRIIP KID.
The issue of units/shares in Liontrust Funds may be subject to an initial charge, which will have an impact on the realisable value of the investment, particularly in the short term. Investments should always be considered as long term.
DISCLAIMER
This material is issued by Liontrust Investment Partners LLP (2 Savoy Court, London WC2R 0EZ), authorised and regulated in the UK by the Financial Conduct Authority (FRN 518552) to undertake regulated investment business.
It should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Examples of stocks are provided for general information only to demonstrate our investment philosophy. The investment being promoted is for units in a fund, not directly in the underlying assets.
This information and analysis is believed to be accurate at the time of publication, but is subject to change without notice. Whilst care has been taken in compiling the content, no representation or warranty is given, whether express or implied, by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.
This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID) and/or PRIIP/KID, which provide full product details including investment charges and risks. These documents can be obtained, free of charge, from www.liontrust.com or direct from Liontrust. If you are not a professional investor please consult a regulated financial adviser regarding the suitability of such an investment for you and your personal circumstances.
