< The 2016 All-Europe Research Team
Richard Parkes, Timothy Race & team
Deutsche Bank
First-place appearances: 2
Total appearances: 10
Team debut: 1997
Deutsche Bank’s four-strong crew under the direction of Richard Parkes and Timothy Race claims the No. 2 position on this newly separate roster. Last year Race, 37, and Mark Clark co-captained the No. 3 squad in Pharmaceuticals, which in 2014 and 2015 included coverage of biotechnology names; Clark left the firm in September. Parkes, 43, most recently appeared in 2013 as co-leader of Deutsche’s first-place Biotechnology team; his co-head of coverage then, Holger Blum, left in May of the following year to join Swiss investment boutique BZ Bank. Together, Parkes and Race also oversee a squad that captures a runner-up position on the Pharmaceuticals lineup this year. Covering 11 regional biotechnology names from their offices in Frankfurt and London, the analysts bring to bear "a deep understanding of the science behind the drugs being developed in the European biotechnology sector, and this shines through in their high-quality research," attests one money manager. "Stock calls are clear, well thought out and not overly sensationalized." In general, says Race, he and his colleagues "see continued room for performance for companies executing on new product launches and delivering derisking clinical data for potential new breakthrough drugs." Specifically, they recommend that clients favor industry heavyweights Actelion of Switzerland and UCB of Belgium. "We believe Actelion’s shares are not fully reflecting upside potential from its new drug portfolio and its ability to defend and grow its pulmonary arterial hypertension franchise Tracleer," Parkes explains. As for UCB, the group expects Phase III clinical trial data for its osteoporosis therapy Romosozumab to build confidence in the company’s next leg of growth. Deutsche’s price objective for UCB is €90; for Actelion it’s Sf180. The stocks closed at €76.66 and Sf125.90, respectively, in mid-January.