From the positive tailwinds for USD-earning companies to promising biotech developments, these picks reflect a mix of established and emerging opportunities.
Darren Thompson, head of asset management, Equity Trustees Asset Management
The combination of Trump policies is positive for the USD. While this will impact on individual sectors and stocks in different ways, we note that it will be a positive tailwind for many high-quality USD earning companies such as Macquarie Bank, Computershare, Block, Resmed and CSL.
By contrast, major resource companies, such as BHP, RIO, FMG, are expected to be weaker due to lower realised iron ore prices.
Bank earnings are anticipated to be broadly flat due to a combination of modest credit growth, ongoing competition restricting net interest margins, ongoing cost pressures and already cyclically low bad debt provisions.
Andrew Hamilton, portfolio manager & head of implementation, Antares Equities
Botanix Pharmaceuticals (BOT) is an Australian listed biotech company that is focused on delivering first-in-class treatments for dermatological conditions across global markets.
Back in June of this year, the US FDA approved their drug, called “Sofdra”, to combat primary axillary hyperhidrosis (extreme underarm sweating). Sweating doesn’t sound like a big problem to most people, but imagine sweating so much that you have to change your shirt three or four times a day at work, or wear absorbent pads – even nappies – under your arms. This sweating isn’t related to stress, so sufferers can’t avoid it.
In the US there have been 7 million people diagnosed with this condition by dermatologists in the last 10 years, and 3.7 million have sought help in the last year alone.
Since the FDA approval, the company has been preparing to launch Sofdra. About two months ago they launched the “patient experience program” to a small number of members of the International Hyperhidrosis Society (IHhS) to try to perfect logistics and digital engagement strategies as well as get early patient feedback. They’re now in the process of going more broadly to the IHhS’s 18,000 US patients. In January they’ll go live with a sales team to all the key prescribing dermatologists in the US as well as broad digital programs.
We think sales will ramp more quickly than the market anticipates and we are backing a management team who have launched more than 30 pharmaceuticals into the dermatology channel in the US.
The information featured in this article is general in nature and does not take into consideration your financial consideration or individual needs, and should not be relied upon.
