Fidelity Portfolio Manager Chris Lin thinks biotechnology firms Alnylam Pharmaceuticals and Regeneron Pharmaceuticals have some of the most effective prescriptions for tackling and potentially treating major diseases with their cutting-edge advancements in RNA interference and monoclonal antibody therapy, respectively.
“These two industry-leading biotech companies are at the forefront of these innovative therapies and are advancing health care, raising the prospects for durable earnings growth,” says Lin, who has chosen both stocks for Fidelity® OTC Portfolio (FOCPX).
In managing the fund since 2017, Lin invests primarily in dynamic growth companies listed on the Nasdaq Stock Market. In particular, he focuses on companies he believes have above-average earnings-growth potential with a sustainable business model, for which the market has mispriced the rate and/or durability of growth.
The health care sector represented 7% of the tech-focused portfolio as of January 31, led by Alnylam (ALNY) and Regeneron (REGN). The former specializes in RNA interference, or RNAi, a promising category of therapeutics, according to Lin.
“RNAi is designed to inhibit disease-causing proteins at their source, offering a novel approach to treatment,” Lin explains. “Unlike traditional therapies that intervene later in the disease pathway, RNAi targets messenger RNA, which is upstream of disease-causing proteins and sometimes referred to as ‘gene silencing technology,’ potentially providing a more effective solution for patients.”
Alnylam’s durable competitive advantage, according to Lin, lies in its industry-leading understanding of RNA biology, extensive experience with finding good druggable RNA targets, skill at solving the longstanding problem of delivering RNAi therapies to the right organs, and track record of maintaining excellent safety profiles for its therapies.
With two successful drugs, Onpattro® and Amvuttra®, already making a significant impact in treating polyneuropathy and cardiovascular conditions associated with transthyretin protein amyloidosis using this platform, Lin believes that Alnylam is poised for continued growth.
Meanwhile, Regeneron is the market leader for antibodies in oncology, as well as inflammatory and eye diseases. Lin likes the company’s robust pipeline, market-leading treatments and commitment to improving patient outcomes.
The company also is on the cusp of receiving approval for a breakthrough novel treatment for multiple myeloma, which Lin considers a meaningful milestone that could improve treatment for this blood cancer.
Additionally, he notes that Regeneron’s Eylea® has already set a high bar in treating retinal diseases, offering patients hope and improved vision, while Dupixent® has become a household name for managing a variety of inflammatory conditions, including atopic dermatitis and asthma.
“Alnylam and Regeneron exemplify not only above-average, durable earnings growth, but also a strong commitment to improving lives and advancing medical science,” concludes Lin.
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Chris Lin is a portfolio manager in the Equity division at Fidelity Investments.
In this role, Mr. Lin is manager of the Fidelity OTC Portfolio and the Fidelity OTC Commingled Pool. He also manages the Information Technology sleeves for several other funds.
Prior to assuming his current responsibilities, Mr. Lin served as a research analyst responsible for the coverage of large cap internet stocks and was also the Technology Equity Research Team Sector Leader. He also previously managed Fidelity Select Computers Portfolio and co-managed Fidelity Select Semiconductors Portfolio, Fidelity Advisor Semiconductors Fund, and Fidelity Stock Selector Mid Cap Fund. He also served as a research analyst and as a research associate covering biotechnology and other health care stocks. He has been in the investment management industry since joining Fidelity in 2002.
Mr. Lin earned his bachelor of arts degree, with honors, in economics from Harvard University.