Whether measured by revenues, market capitalization or FDA approvals, it is clear to see that the biotech industry is again on the rise. This cannot only be explained by the healthcare sector’s resistance to recession; rather, it seems to me that biotech is about to finally overcome a deep structural crisis induced by lack of capital and by doubts about the industry’s ability to handle rising treatment costs and the failure of product candidates.

The key to this new success lies in the biotech industry’s return to its main virtue: innovative strength. Instead of simply copying traditional structures, smart biotechs have taken the crisis as an opportunity to sharpen their profiles and organizations. Now, with more efficient R&D and a market-driven strategy, they have all the opportunity to grow faster than ever.

What makes me so optimistic? First, there are still huge unmet medical needs of millions of patients – consider cancer for instance. Second, big pharma companies have not managed to fill their product pipelines sufficiently and are now more dependent than ever on biotech innovations. And third, an aging population around the globe means an increasing demand for better treatments that enable patients to enjoy longer lives.

Nevertheless, such an environment does not automatically lead to outstanding returns for investors. Thus, a very selective approach is required to identify the winners of tomorrow. These are companies with clear leadership in R&D and an entrepreneurial management team. Thanks to our diligent investment policy, I am quite confident that our portfolio comprises some of these winners and will come to include more. These entrepreneurs have the necessary momentum to outperform their competitors in the industry and, most importantly, to improve the lives and well-being of patients.