Some of the world’s largest hedge funds, including Balyasny Asset Management and DE Shaw, are recruiting doctors, scientists, and healthcare analysts to gain specialised insights into pharmaceutical stocks amid heightened volatility in the sector, according to a report by Reuters.
The report cites unnamed sources familiar with the trend as highlighting that this year, pharma companies have seen dramatic stock movements following updates on financial results and drug trials. For example, AbbVie’s shares plunged 11% on 11 November after announcing the failure of its mid-stage schizophrenia drug trials. Meanwhile, shares in Bristol Myers Squibb surged nearly 13% in pre-market trading on the same day, while Novo Nordisk saw a 7% jump after reporting better-than-expected sales for its Wegovy weight-loss drug.
Point72 Asset Management, Schonfeld Strategic Advisors, Qube Research & Technologies, and Squarepoint are also among the hedge funds reportedly hiring medical professionals to strengthen their research capabilities. Together, these firms oversee over $200bn in assets. Recruitment efforts have intensified over the past six months, particularly in Europe, according to individuals with knowledge of the matter.
While the funds declined to comment, insiders revealed that medical experts are being integrated into research teams to provide analysis on company prospects, focusing on drug trials and potential regulatory approvals.
Hedge funds are no strangers to employing specialists in fields like geology or meteorology to gain insights for commodities or energy trading. Now, they’re applying a similar approach to healthcare, leveraging the expertise of doctors and scientists to understand the complexities of drug development and market potential.
