Korea Investment Management Launches KIM ACE Global Big Pharma ETF, Tracking the
Solactive Global Big Pharma Index
Solactive is pleased to expand its collaboration with Korea Investment Management (KIM), launching the Solactive Global Big Pharma Index that applies market data expert Evaluate Pharma’s robust data resources. This index offers investors strategic exposure to the top performing pharmaceutical and biotechnology companies globally, providing clients targeted exposure to the healthcare sector. Evaluate as a data solutions and analytics company, provides over 20 years of trusted pharmaceutical data solutions and expertise to empower confident decision-making. Vast proprietary sources are distilled into clear intelligence addressing strategic challenges in development and commercialization.
With rapid advancements in medical research, technology, and an increasing global demand for healthcare, the pharmaceutical industry is expected to experience substantial growth in the following years. The aging population and the prevalence of chronic diseases continue to drive the demand for prescription drugs and other medical treatments. According to research, the sector’s revenue is forecast to grow at an annual rate of around 7.7% until 2030, reaching a predicted sales volume of $1.7 trillion by the end of the decade[1].
The Solactive Global Big Pharma Index comprises 15 top companies from the pharmaceuticals and biotechnology sectors listed on the New York Stock Exchange, NASDAQ, or the SIX Swiss Exchange. The index focuses specifically on companies with at least one “Big Pharma Drug”, defined as a major pharmaceutical product generating substantial sales. Using revenue and growth data provided by Evaluate Ltd., potential constituents are selected based on their current free-float market capitalization along with projected revenue growth rate. The index constituents are weighted according to their adjusted free-float market capitalization with a maximum individual weight capped at 20%.
The ETF is listed on 19th November on the Korean Stock Exchange with the ticker code “497510.KS”.
Timo Pfeiffer, Chief Markets Officer at Solactive, comments: “We are delighted to partner with KIM to bring this inventive index to the market. The Solactive Global Big Pharma Index provides investors an attractive investment opportunity to capture such growth in the biopharma industry, in which its significance grows along with the rising global demand for healthcare products and services.”
Yongsoo Nam, Managing Director and Head of ETF Management at Korea Investment Management, comments: “We’re excited to launch our product in collaboration with Solactive and Evaluate. Advances in AI technology are expected to drive significant growth in the pharmaceutical and biotech industries. Big pharmaceutical companies, with its strong capitalization and economic moats (such as brand power, R&D capabilities, and blockbuster drugs), will be the biggest beneficiary of this growth and will continue to lead the market.
The KIM ACE Global Big Pharma ETF invests in a market-representative selection of big pharmaceutical companies, focusing on drug revenue growth while strategically accounting for patent expiration risks and drug development events. We aim to position this ETF as a leading product in the pharmaceutical biotechnology market.”
Thomas Halliday, General Manager at Norstella’s Strategic Intelligence Portfolio (inclusive of Evaluate Pharma), comments: “We are pleased to partner with KIM and Solactive to bring this inventive index to the market. This new index will enable the investment and trading community to benchmark key areas of growth, emerging pharmaceutical technologies, and clinical innovations that will enable them to make effective investment decisions. 2025 presents a promising opportunity for the biopharma industry.”
[1] World Preview 2024: Pharma’s Growth Boost