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Performance and Changes to the Portfolio
The Platinum International Healthcare Fund advanced 1.1% forthe quarter, with the MSCI World Healthcare Index increasing2.2%. For the year, the Fund was up 4.7%, lagging the Indexwhich advanced 9.8%.
The Fund has been lagging the Index mostly due to the highcash position. In hindsight, we should have added moreweight to our core biotech holdings as the sector is beneﬁtingfrom merger and acquisition fever. However, in the long-termthe fever will subside and we would prefer to invest in compa-
Bianca Ogden Portfolio Manager Disposition of Assets REGIoN Value of $20,000 Invested Over Five Years
Source: Platinum and MSCI. Refer to Note 2, page 4.
Almost all of our biotech holdings added signiﬁcantly to the
performance. BioMarin, the US orphan drug biotech is gradu-ally executing on its pipeline, as is swiss biotech Actelion. This
Every November there is someone in our ofﬁce who decides to
quarter, Actelion was a strong performer having reported suc-
follow the ‘Movember’ movement and for one month this per-
cess with its new drug, Macitentan and is now well-placed to
son will look a little bit out of place with their moustache! It is
reshape the treatment of pulmonary hypertension. Incyte, our
all in the spirit of raising awareness (and funds) for prostate
longstanding US biotech holding has transformed into a com-
cancer, a disease where early detection is absolutely crucial.
mercial company with sales and a promising pipeline. Im-
Prostate cancer primarily develops in later stages of life and
munoGen is also getting very close to having a drug approved.
progresses slowly without many noticeable symptoms.
The company’s ﬁrst drug-carrying antibody T-DM has seen sig-
Prostate-speciﬁc antigen (PSA) detection is fairly well-known
niﬁcant progress in managing Her2 positive breast cancer.
and elevated levels of PSA suggest a more detailed prostate
Roche has licenced the drug and is positioning T-DM1 as the
Herceptin successor. The strategy is looking to pay-off and
Treatment of prostate depends on the stage of the disease and
Roche itself was also successful in gaining approval of another
ranges from a ‘wait and see’ approach, surgery and radiation
new breast cancer drug this quarter.
to pharmacological castration. once the tumour is ‘castration
Not everything went well this year; Teva has been a disap-
resistant or hormone resistant’, heavy chemotherapy has to be
pointment. While the Multiple Sclerosis (MS) drug Copaxone
will not see generic branding until 2014, the commercial via-
It is this later disease stage, when the tumour circumvents cas-
bility of the follow-on MS drug is unlikely. Essentially, Teva
tration and starts to grow and spread again, that has attracted
has to continue to look for additional sources of growth. In re-
most drug development efforts, as disease progress can be
cent years, the company has done exactly that but as always
rapid. In reality these ‘hormone resistant patients’ are not so
progress is slow. A new CEo has been recruited who brings
resistant after all, there are alternative androgen1 pathways at
the right credentials having been instrumental in the transfor-
play that trigger a growth signal and there are also receptors
mation of Bristol Myer Squibb’s pipeline. Teva’s valuation is
that decide to start sending signals without any ligand.
cheap and we see value in the European and Japanese genericsdivision, the pipeline, as well as Teva’s biosimilar joint venture
Zytiga, a Johnson & Johnson (JNJ) drug, is a new treatment2
that speciﬁcally targets the androgen pathway via the inhibi-tion of 17 α-hydroxylase/C17,20 lyase (CyP17A1), an enzyme
This quarter we have been more active than usual, adding ﬁve
that is involved in the synthesis of testosterones. Testosterone
new companies to the portfolio. We added German conglom-
levels are dramatically reduced when taking Zytiga and results
erate, Bayer. At Bayer, many structural as well as manage-
have shown that patients with late stage disease live longer.
ment changes have occurred that should put the company on
JNJ gained access to this drug via the acquisition of Cougar
a better footing. We like the potential of the pipeline, the
Pharmaceuticals and is hoping to treat earlier stage patients.
depth of the consumer business and the stability of theveterinarian business.
Japanese Pharma company Astellas is also aiming at prostatecancer. The company has good expertise in urology and in
We are slowly trimming some of our US winners and reinvest-
2009 licenced another new anti-androgen MDV3100 drug
ing the proceeds into European biotechs that we have held for
from US biotech, Medivation. This drug does not target the
the past 12 months (like Actelion and Thrombogenics). We
synthesis of androgens, it targets the androgen receptor which
also added to our European pharma and diagnostic holdings.
transmits growth signals to the tumour. Results for MDV3100are looking good and approval is anticipated next year. Astel-las will share commercialisation in the US with Medivation,while outside the US, Astellas will work alone and pay royal-ties to Medivation.
Androgen: male hormones such as testosterone.
Approved June 2012 in Australia; EU approval in September 2011; US approval in April 2011 .
Both Zytiga and MDV3100 have great potential for prostate
cancer. For JNJ it is a signiﬁcant addition to their portfolio,while for Astellas it is a much more signiﬁcant product as it al-
Macroeconomical woes are not able to dent the excitement of
lows the company to expand its ex-Japan oncology franchise.
new product cycles in the healthcare sector. Now that it isclear that the US healthcare reform is here to stay, European
We recently added Astellas to the portfolio after having moni-
austerity measures are no longer a surprise and patent cliffs
tored the company for some years. Astellas is the second
do not mean companies will expire; drug developers, pharma
biggest pharma company in Japan and stands out as it has
and biotech included, are enjoying a renaissance. We see this
been quite successful with its acquisitions and licencing deals,
while at the same time the balance sheet is in pristine condi-tion. Furthermore, the pipeline is progressing well and the
In medtech, however, we remain very selective and are still
patent expiration of Prograf, one of their key drugs, has been
looking for a renaissance among the big companies.
oncology is not new to Astellas, about two years ago the ac-quisition of oSI Pharma (we previously owned oSI) providedAstellas with a great oncology foundation. Valuation of Astel-las is reasonable at an enterprise value of $16.2 billion, sales of$12.2 billion and about 15x earnings (~11x excluding cash, wealso get a 4% dividend). MDV3100 will be a nice addition toAstellas who can leverage its urology franchise. For compari-son, Medivation is valued at $3.5 billion with MDV3100 theonly commercial product in the near future. To us, Astellas of-fers better value.
The investment returns are calculated using the Fund’s unit price and represent the combined income and capital return for the speciﬁc period. They are net offees and costs (excluding the buy-sell spread and any investment performance fee payable), are pre-tax, and assume the reinvestment of distributions. The in-vestment returns shown are historical and no warranty can be given for future performance. you should be aware that historical performance is not a reliableindicator of future performance. Due to the volatility of underlying assets of the Funds and other risk factors associated with investing, investment returns canbe negative (particularly in the short-term).
The inception dates for each Fund are as follows:
Platinum International Fund: 30 April 1995
Platinum International Brands Fund: 18 May 2000
Platinum International Health Care Fund: 10 November 2003
Platinum International Technology Fund: 18 May 2000
The investment returns depicted in this graph are cumulative on A$20,000 invested in the relevant Fund over ﬁve years from 30 June 2007 to 30 June 2012 rel-ative to their Index (in A$) as per below:
Platinum International Fund - MSCI All Country World Net Index
Platinum Unhedged Fund - MSCI All Country World Net Index
Platinum Asia Fund - MSCI All Country Asia ex Japan Net Index
Platinum European Fund - MSCI All Country Europe Net Index
Platinum Japan Fund - MSCI Japan Net Index
Platinum International Brands Fund - MSCI All Country World Net Index
Platinum International Health Care Fund - MSCI All Country World Health Care Net Index
Platinum International Technology Fund - MSCI All Country World Information Technology Net Index
(nb. the gross MSCI Index was used prior to 31 December 1998 as the net MSCI Index did not exist).
The investment returns are calculated using the Fund’s unit price. They are net of fees and costs (excluding the buy-sell spread and any investment perform-ance fee payable), pre-tax and assume the reinvestment of distributions. It should be noted that Platinum does not invest by reference to the weightings of theIndex. Underlying assets are chosen through Platinum’s individual stock selection process and as a result holdings will vary considerably to the make-up of theIndex. The Index is provided as a reference only. Disclaimer
This publication has been prepared by Platinum Investment Management limited ABN 25 063 565 006 AFSl 221935 trading as Platinum Asset Management (Plat-inum®). It contains general information only and is not intended to provide any person with ﬁnancial advice or take into account any person’s (or class of persons’)investment objectives, ﬁnancial situation or needs. Before making any investment decision you need to consider (with your ﬁnancial adviser) whether the informa-tion is suitable in the circumstances.
Platinum is the responsible entity and issuer of units in the Platinum Trust Funds® (the Funds). you should consider the PDS and Supplementary PDS in decidingwhether to acquire, or continue to hold, units in the Funds. you can obtain a copy from Platinum’s website, www.platinum.com.au, or by phoning 1300 726 700(within Australia), 02 9255 7500, or 0800 700 726 (within New Zealand), or by emailing to [email protected].
No company in the Platinum Group® guarantees the performance of any of the Funds, the repayment of capital, or the payment of income. The Platinum Groupmeans Platinum Asset Management limited ABN 13 050 064 287 and all of its subsidiaries and associated entities (including Platinum).
Platinum Asset Management 2012. All Rights Reserved. MSCI Inc Disclaimer
Neither MSCI Inc nor any other party involved in or related to compiling, computing or creating the Index data (contained in this Quarterly Report) makes any ex-press or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly dis-claim all warranties of originality, accuracy, completeness, merchantability or ﬁtness for a particular purpose with respect to any of such data. Without limiting anyof the foregoing, in no event shall MSCI Inc, any of its afﬁliates or any third party involved in or related to compiling, computing or creating the data have any liabil-ity for any direct, indirect, special, punitive, consequential or any other damages (including lost proﬁts) even if notiﬁed of the possibility of such damages. No fur-ther distribution or dissemination of the Index data is permitted without express written consent of MSCI Inc.
Sono un farmacista trentunenne calabrese; vivo ed esercito come titolare di una parafarmacia in un paesello di 5000 anime ai piedi della Sila, assaporando ogni giorno le criticità di una regione difficile, povera, con mille difficoltà, alla quale si aggiunge anche l'ulteriore pena del non potersi lamentare poiché rispetto alla gran parte di giovani conterranei, appartengo a quella elite di giov
João Carlos Correia Introdução: A cultura dos mass media vive sob suspeita. Por um lado, sempre se fez sentir a vocação dos mass media para despertar e gerir a emoção, o que desde logo remete para as categorias do espectáculo e da subjectividade. Por outro lado, sempre se suspeitou da manipulação do desejo como forma de impedir o uso da razão, o que leva a pensar na fig