Thursday, 5 August 2021 Reading time : 2 minutes

The Corona pandemic showed that we need innovative pharmaceutical companies - whether start-ups or established large corporations. Companies like Curevac, which was probably only known to industry insiders before the outbreak of the pandemic, received global attention in a short time.

Within the healthcare sector, there are several sub-industries that have grown in importance in recent years; one of these industries is the business of biotechnology.

Demography is business
Thanks in part to better medical care, the life expectancy of people worldwide is increasing. Particularly in highly developed societies, birth rates are falling, while people are getting older and older - the so-called "age pyramids" are turning into "age firs". People aged 50 and over are therefore more prevalent in society than younger people. This means that diagnoses of diseases and conditions that occur more frequently in old age are becoming more frequent. Cardiovascular diseases, arthritis, Alzheimer's disease and cancer are becoming an even greater focus of research. Biotechnology companies engaged in research, treatment and innovation in these conditions are benefiting from these developments.

Fast-track research for rare diseases
The research efforts and funds of giant international pharmaceutical companies are concentrated in common ailments (understandable in purely economic terms, as the most lucrative). However, some biotech companies are focusing on researching and treating rare diseases - for example, using RNA and CRISPR technologies.

The shares of some biotech companies have moved strongly in recent months and have high implied volatility. This in turn leads to higher option premiums, resulting in high coupons.

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Barrier Reverse Convertible on Biogen, CRISPR Therapeutics, Beam Therapeutics and CureVac (USD/CHF)

• 30% (USD) / 29% (CHF) Coupon p.a.*
• Defensive barrier at 57%*
• 12 months Term
• Subscription deadline August 10, 2021
• Termsheet USD
• Termsheet CHF

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Lower volatility: lower yield, but also lower risk.

Callable Barrier Reverse Convertible on Gilead, AbbVie, Amgen and Vertex (USD/CHF)

• 10.5% (USD) / 9.35% (CHF) Coupon p.a.*
• 65% Barrier*
• 12 months Term
• Subscription deadline on August 11, 2021
• Termsheet USD
• Termsheet CHF

* indicative

Disclaimer
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