N°1 MARCH 2021 WWW.SWISSQUOTE.COM CHF 9.-

WWW.SWISSQUOTE.COM FINANCE AND TECHNOLOGY UNPACKED

PORTRAIT HeiQ, the Swiss hero of high-tech masks

COMEBACK The flamboyant comeback of Japanese equities

ANALYSIS Convertible bonds: back in fashion

DOSSIER

THE BOOMING DNA BUSINESS The madness of mass testing THE BOOMING DNA BUSINESS The potential of synthetic DNA The revolution of messenger RNA

ILLUMINA BIONTECH TWIST BIOSCIENCE CRISPR THERAPEUTICS INVITAE MYRIAD GENETICS SWISSQUOTE N°1 MARCH 2021

EDITORIAL SWISSQUOTE MARCH 2021

Genetics emerges from the lab

By Marc Bürki, CEO of Swissquote

If you want to find areas to pharmaceutical industry, especially invest in, go to laboratories,” a Swiss giants, will start taking a Swiss scientist recently told serious look at the technology. me. I recalled this discussion at the time of writing this editorial, and it One positive aspect to come from “completely resonates with what is this pandemic is that it has thrust happening in the world today. Now into the spotlight the booming sector let’s back up a bit. Just 18 months of genetics. Like mRNA technology, ago, before the coronavirus brought this field of research is moving out the planet to a halt, no one was of the laboratory and into the world p.38 talking about messenger mRNA. of business. Of course, we have Big pharmaceutical companies already heard of genetic engineering were barely interested in the applications, such as genetically technology. And yet, a handful of modified organisms (GMOs). But researchers have been fully aware for this issue, we chose to look of its tremendous potential for at new solutions being developed. p. 44 almost 30 years. One pandem- For example, synthetic biology is ic later, two little-known biotech believed to be able to use artifi- firms, Moderna and BioNTech, raced cial bacteria within the next few past industry giants as the first years to produce materials such to bring SARS-CoV-2 vaccines to as leather for our clothing, but market. It has been a turning point. without sacrificing animals. And by 2040, our data might be stored On its own, the vaccine developed in DNA instead of data centres. by Moderna is expected to gener- ate close to $15 billion in sales by Genetics offers immense possi- 2021. This would make it one of the bilities, but just as many potential biggest blockbusters in pharmaceu- misuses. Companies are already tical history. Not bad for a company offering ways of finding love based launching its first ever drug on the on genetic characteristics. Apart market! But now, mRNA technology from lacking any scientific basis is thought to be capable of revo- and defying ethics, this so-called lutionising not only prophylactic “DNA dating” is not without risk. p. 52 vaccines, but also many therapeutic Today, genetic data is just as val- applications, as pioneering mRNA uable as digital data, if not more. p. 42 researcher Steve Pascolo explains in this issue. No doubt that the Happy reading!

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PUBLISHER Swissquote Chemin de la Crétaux 33 1196 Gland – Switzerland DOSSIER T. +41 44 825 88 88 www.swissquote.com [email protected] 28 74 Manager Brigitta Cooper ANALYSIS THE GENETICS EDITORIAL

Editor-in-chief BUSINESS Ludovic Chappex IS BOOMING Associate editor Bertrand Beauté Design director TRAVEL Natalie Bindelli and Caroline Fischer CANA atelier graphique Route de Jussy 29 – 1226 Thônex JAPAN www.ateliercana.ch 18 Editorial staff Bertrand Beauté, Stanislas Cavalier, HEIQ Ludovic Chappex, Gérard Duclos, Salomé Kiner, Raphaël Leuba, Martin Longet, Angélique Mounier-Kuhn, Grégoire Nicolet, Gaëlle Sinnassamy, Julie Zaugg Layout Natalie Bindelli, Caroline Fischer, Romain Guerini (CANA atelier graphique)

Cover Tavis Coburn

Photography 24 58 AFP, Getty-images, Newscom, Istock Editing (English version) Ose Ayewoh, Marco Simon Translation Technicis Finance CONTENTS PRINTING, BINDING AND DISTRIBUTION Stämpfli Ltd. Wölflistrasse 1 – 3001 Bern 3. EDITORIAL 20. FOCUS 28. DOSSIER : THE GENETICS BUSINESS 58. STOCK EXCHANGE 72. AUTO IS BOOMING www.staempfli.com by Marc Bürki Convertible The flamboyant comeback Fiat 500e, bonds: back of Japanese equities the free electron ADVERTISING 34. Infographic : 44. Winners of 8. SCANS in fashion Infoplus AG genetics, a journey the genome Traubenweg 51, CH-8700 Küsnacht Economic 62. INNOVATION 74. TRAVEL hans.otto i-plus.ch from the lab to our revolution @ survey 22. INTERVIEW Promising Swiss A springtime everyday lives WEMF “UK stocks start-ups breeze in Ticino 52. DNA: mass-market REMP 2020: 53,555 Ex. Print run: 60,000 ex. 16. TRENDS are highly 38. RNA vaccines: testing goes wild Personality, undervalued” an incredible 64. WATCHES 80. TRIED AND TESTED country, innovation Chinese e-commerce: Repairing a smartphone breakthrough 56. The astounding 24. PORTRAIT Swiss watches move in at home potential of 18. FOCUS HeiQ, the Swiss 42. Interview with synthetic biology ABONNEMENTSUBSCRIPTION Songs: hero of high-tech Steve Pascolo, 68. SWISSQUOTE CHF 40.-40 FOR pour 6 6ISSUES numéros the popular new masks an mRNA pioneer A more relaxed www.swissquote.ch/magazine/f/www.swissquote.ch/magazine asset class Forex experience AL DIAZ, NEWSCOM / HEIQ ISTOCK KAZUHIRO NOGI, AFP

4 5 MÊME UN CEO A UN CEO. Cares for what matters. what for Cares La nouvelle Classe S. La nouvelle

MBE_003084-00_MBPC_S-Kl_Launch_Swissquote_Maenner_400x260_co2_FR_01.indd 1 18.01.21 11:48 MBE_003084-00_MBPC_S-Kl_Launch_Swissquote_Maenner_400x260_co2_FR_01.indd 2 18.01.21 11:48 SWISSQUOTE MARCH 2021 SCANS SWISSQUOTE MARCH 2021

digital RANKING ABB IN THE CLOUD SCANS After partnering with Microsoft Azure in 2016 and Salesforce in 2018, ABB is TOP 5 US IPOS OVER THE PAST media moving forward with its cloud-first strat- FIVE YEARS 2021, YEAR OF THE PODCAST egy. This time the Swiss-Swedish firm is (valuation at the time of the IPO) partnering with Google Cloud to optimise data centre management. ABB especially -70% 1. UBER (9 MAY 2019) hopes to leverage Google Cloud’s arti- $82.4 BN ficial intelligence and machine learning The estimated 2. AIRBNB (9 DECEMBER 2020) capabilities. In an initial phase, Google discount granted to $47 MRD Cloud will migrate ABB’s data before Ryanair for buying 3. SNAP (2 MARCH 2017) moving to the automation phase. This is 75 Boeing 737 Max jets, $33 BN an important victory for Google, as the or roughly $30 million 4. LYFT (29 MARCH 2019) tech giant strives to outstrip Microsoft apiece instead of $24 BN as second-largest provider of cloud ser- $125 million at list “Brexit vices to businesses, with Amazon Web price. That was the 5. SLACK (20 JUNE 2019) $23 BN is still a Services (AWS) still ranking first. least the aircraft The Dirty John true ABB MKS MSFT AMZN CRM manufacturer could crime podcast has Source : Crunchbase divorce. been listened to more do to jump-start sales Both sides than 40 million times on a plane that was since its publication grounded for nearly TOP 5 LARGEST FUNDING come out in late 2017. two years. ROUNDS IN 2020

DR (based on a series of qualitative criteria) weaker. It’s Podcasting is the new darling of tech years, Spotify has also acquired a total 1. RELIANCE JIO a lose-lose giants. In December, Amazon bought the US of five podcasting companies. Apple, $5.7 BN podcasting network Wondery, the force which popularised­ podcasts, and Google stock exchange SPACS MOVE INTO EUROPE 2. RIVIAN situation” behind the detective thriller Dirty John, continue to develop their own platforms. $2.5 BN whose television adaptation was broad- Meanwhile, Twitter is testing an audio Michel Barnier, 3. KE.COM cast on RTS in late 2020. Wondery will platform. In early January, the social me- Xavier Niel managed chief negotiator for the to raise 300 million $2.4 BN European Union on Brexit, be integrated into Amazon Music, which dia network snapped up Breaker, a start- euros for his SPAC, 4. WAYMO 19 January 2021 added podcasts to its streaming services up that has developed a podcast app. launched with in September 2020. In the past two AMZN GOOG AAPL TWTR Moez-Alexandre $2.25 BN Zouari and 5. SPACEX Matthieu Pigasse. $1.9 BN

Source : Crunchbase robotics HYUNDAI TAMES SPOT NUMBER OF COVID-19 DRUGS Boston Dynamics, designer of the robot AND VACCINES IN DEVELOPMENT (as of 16 December 2020) dog Spot, is now officially a member of the Hyundai family. The $1.1 billion deal 1. SORRENTO THERAPEUTICS assigns a majority 80% stake to Hyundai 12 Motor Group, while the Japanese holding 2. IMMUNOPRECISE ANTIBODIES company SoftBank will hold on to the 9 remaining 20%. The robotics company has 3. ROCHE

changed owners three times in just seven JOEL SAGET / AFP 8 years. After moving to Google in 2013, Special Purpose Acquisition Companies 2MX Organic, a SPAC created to acquire 4. ASTRAZENECA Boston Dynamics became a subsidiary of €1,000 BN had a banner year on the US IPO market companies focused on sustainable and 7 the SoftBank empire in 2017. For Hyundai, in 2020. With no commercial operations, responsible consumer goods. On its first the acquisition comes under its “Elevate” The estimated value 5. GLAXOSMITHKLINE these vehicles, better known as SPACs, day of listing in December, the company 7 project first presented at CES 2019 to of the global green go public solely to buy companies and raised the maximum authorised amount create an electric Ultimate Mobility Vehi- bond market in 2021, facilitate the process of taking them of €300 million, making it the largest IPO 6. NOVARTIS cle, or UMV, equipped with four retracta- i.e. growth of €300 public (see Swissquote Magazine no. 5 of 2020 in Paris. Swiss newspaper Finanz 7 ble legs that can move across any type billion compared with 2020). Enjoying that momentum, French und Wirtschaft reports that several Swiss of terrain. 005380 9984 2020, according to NN businessmen Xavier Niel, Moez-Alexandre banks are currently developing SPACs, and Source : Statista Investment Partners. Zouari and Matthieu Pigasse founded local investors are interested. 2MX YOSHIO TSUNODA / AFLO NEWSCOM YOSHIO TSUNODA

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SCANS entertainment Produced by Sony, LEADER IN JAPANESE ANIME KICKSTARTER the animated film Demon Slayer, In January, Sony bought the Californian released in October streaming service Crunchyroll, leader 2020, became in Japanese anime, for $1.175 billion. the biggest hit at the Japanese box The brand was previously owned by AT&T office. subsidiary WarnerMedia. The Japanese giant hopes that subscriptions will pro- vide a steady revenue source to reduce its dependence on electronics sales, which tend to fluctuate with economic cycles. The acquisition echoes a wave of takeovers in the industry, with several CHF 500 M large groups taking over streaming plat- forms in 2020. In March, Fox snatched The amount of Tubi TV. In June, China’s Tencent ac- the COVID bill quired the Malaysian platform iflix. And for Swiss health in November, Baidu bought the Chinese insurers in 2020. service YY Live for $3.6 billion.

6758 T FOX 0700 BIDU STORY GOAT ARCO 2-IN-1 ALWAYS WELL-GROUND COFFEE SONY The start-up Goat Story offers a range of high-end coffee prod- minerals data ucts. Now it is launching a new IRON, FLYING HIGH FACEBOOK DRAGS DOWN WHATSAPP elegant and versatile electric grinder. The hand grinder is In December 2020, the price of iron hit Group, produced a record-breaking small, to be carried around eas- $176 per ton for the first time since 100-plus million tonnes in 2019 and On 10 April, 2018, ily and features a matte black 2011. That’s a 70% increase over the 2020 to serve its big-name customers Mark Zuckerberg aluminium exterior shell with a year. Several factors explain this rise, such as BHP Group and Rio Tinto. How- had to explain him- sleek design. Its dispenser-col- self to the United including the post-pandemic recov- ever, the country needs to import 80% States Senate over lector has the dimensions of a ery in Asia and continued decline in of its iron ore needs. Australian bank several scandals standard espresso filter holder. exports from Brazil, one of the largest Westpac expects the price of iron to fall, “We’ve seen related to the lack The machine can grind up to 50 producers of high purity iron. But the but strong Chinese demand is likely to mental health of data protection grammes of coffee at once and spike in prices mainly comes from ro- maintain its price at $100 per ton until on Facebook. offers 120 grind settings in its bust demand in China. The world’s larg- the end of 2022. reasons for basic model, with an upgraded est steel producer, China Baowu Steel 600019 BHP RIO people who want version featuring 180 different settings. For the lesser connois- to come back seurs, four grinds are pre-set for different brew methods: to work DOULIERY OLIVIER / ABACA NEWSCOM Iron ore being espresso, filter, ibrik and cold imported into the (in the office). brew. The best part is that the port of Rizhao in By trying to scrape a profit from WhatsApp, acquired in 2014, China, in 2019. I’m a firm be- will Mark Zuckerberg break his toy? Since the announcement of electric grinder can be easily liever that the a new personal data policy on January 6, the green messaging converted into a manual system app has been caught up in mayhem. Its users have interpreted (included) for grinding coffee office is an im- the new clauses as forcing them to share their WhatsApp data on the go. Perfect for camping. portant part of with Facebook, a company that does not have the best track record in terms of privacy. And they have been leaving in droves. everyday According to Sensor Tower, the number of WhatsApp down- living” loads between the first and second week of January dropped by 14%. Meanwhile, downloads of competing services, namely WeWork Chief Executive Telegram and Signal, exploded by 90% and 3,400% respectively. Sandeep Mathrani, Signal is the messaging service that WhatsApp founder Brian FUNDS RAISED AVAILABLE in an interview with Reuters on Acton joined in 2018, after storming out on Facebook in disa- $1,000,759 JUNE 2021 13 January 2021 greement over its monetisation strategy. FB STR / AFP

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SCANS telecoms INTEL IS GETTING RICH OFF HUAWEI

Intel wants to establish itself as a major player in 5G.

“We’ll move from a car com- pany working with tech to a tech company working with cars, making at least 20% of

its revenues AGENCY / AFP ALI / BALIKI ADALOU from services, With the ban against the Chinese firm son and ZTE, but Huawei designs its own data and Huawei, telecoms operators are turning circuits for 5G antennas. With the chip’s to other suppliers for their mobile success, Intel targets a 40% share of energy trading antennas, mainly Nokia, Ericsson and the chipset market for telecommunica- by 2030” Samsung. Indirectly, this paradigm shift tions equipment in 2021. That should is also good for Intel. The world leader help it catch up with the 7-nanometer Luca de Meo, in semiconductors released a new chip process technology for PCs and the loss CEO of Renault, at the beginning of 2020 specifically de- of the contract from Apple, which decid- 14 January 2021 signed for 5G antennas. The Snow Ridge ed to produce its own chips. 5G chip is already used by Nokia, Erics- INTC NOKIA ERIC-B 0763

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SCANS

finance A SWISS GATEWAY FOR DIGITAL ASSETS La toute nouvelle

The headquarters of SIX, the operator of the Swiss stock exchange, in Zurich. “Among Électrique publicly available 100 % Connectée consumer health devices, Innovante the Halo appears to collect an unprecedented

SIX level of The Swiss stock exchange operator SIX cies and digital assets. SIX and Custodig- personal is taking a significant stake in Custodigit, it’s Institutional Digital Asset Gateway the joint venture founded in 2018 by will cover the entire asset value chain: information” Swisscom and Sygnum, a digital asset trading, smart order routing, settle- Minnesota Senator management company with a banking ment, custody and access to secondary Amy Klobuchar, license in Switzerland. The partnership markets. Specifics of the deal were not a lawyer, expressed concern will provide banks and their customers disclosed, but the service will be available in an open letter to the US with institutional access to cryptocurren- in the first quarter of 2021. SCMN Department of Health and Human Services over Amazon’s new health tracker, on 11 December 2020

IPO

HEMPFUSION, THE CBD COMPANY, SMOKES THE TORONTO STOCK EXCHANGE As major hemp producers saw which are distributed to some their share prices soar at the 4,000 retailers across all 50 end of 2020, HempFusion took states of the United States and 9.3% the opportunity to go public at other countries. The American Cash injections from the Fed, the beginning of January. The data provider SPINS reports the US central bank, over the Colorado-based firm is one of that HempFusion is developing first three quarters of 2020 the leaders in the field of CBD- 30 additional products, and its equalled 9.3% of global GDP, i.e. based health and wellness subsidiary Probulin Probiotics three times more than during products. The company owns is one of the fastest-growing the 2008 financial crisis. several brands – including probiotics companies in the HempFusion, Probulin Pro- United States. biotics and Biome Research – CBD.U Profitez de nos offres entreprises exclusives dans le réseau Honda e 14 SWISSQUOTE MARCH 2021 TRENDS SWISSQUOTE MARCH 2021 TRENDS

The Mojo Lens, a smart contact MOJO LENS lens, features a MicroLED display with an anticipated resolution of 14,000 pixels per inch (ppi).

The country BURKINA FASO

Solar to save the country Burkina Faso is the first country in West Africa with a solar panel pro- The figure duction and assembly facility. With CONRAD KEIJZER a daily yield of 200 panels, annual production is expected to provide A chemical industry 30 megawatts of energy, which is 3% of the country’s total energy veteran leading Clariant consumption. This factory The innovation Manufacturer The role was vacant for a year, is the first stage in the MOJO LENS Mojo Vision Position but the Basel-based chemical Yeleen project (“Yeleen” Population and Menicon CEO products and pigments compa- means “light” in Bambara). Smart contact lenses that display data ny finally found its new CEO in 20,321,378 The plan is to build 16 so- (2019) Availability Age Conrad Keijzer. The Dutch citizen lar power plants in order Mojo Vision, a California start-up, manufacturer Menicon to make the mented-reality not disclosed 52 previously spent 24 years at to take advantage of the has developed a prototype smart prototype marketable. Mojo Vision lenses should AkzoNobel, a Dutch company GDP per capita strong sun in the Sahelian contact lens dubbed the Mojo Lens. also raised $51 million in April 2020 be on the market $786.896 Price Nationality specialising in paints and chemical country. By 2030, Burkina With a miniature screen, the lens to finalise a more advanced proto- in 2021: a model (2019) not disclosed Dutch products. He was a member of the Faso aims to cover 30% can display images and text in the type, since the current version had called Nreal by Executive Committee and CEO of Growth in 2020 of its electricity needs centre of the wearer’s field of vision. only one monochromatic screen. Vodafone, the its performance coatings division. He then spent nearly +2% (2018) with solar energy. The In December, Mojo Vision part- While we wait for these lenses to be first connected Ray-Bans in partner- a year and a half as CEO of French company Ime­rys, 2021 estimate: country currently depends nered with Japanese contact lens available, several models of aug- ship with Facebook, and Apple Glass. a leader in mineral-based speciality solutions. +5.8% heavily on electricity imports from its neigh- Keijzer’s first task will be to manage the lay-off of Main economic bours. Unfortunately, 1,000 employees, announced in November, following a sectors electricity is not the series of disinvestments. Barclays’ analysts believe that agriculture: only commodity in short Clariant now has become a potential M&A target. Asked harvesting supply: two million people, about this at a press conference, the CEO responded and farming or one in 10 Burkinabe, that he expected future organic growth and acquisitions. sorghum, corn suffer from hunger due to and especially a recurrence of terrorist Keijzer, who speaks Dutch, English, French, German cotton; diaspora; attacks (1,600 deaths in and Spanish, has a Master’s in industrial engineering mining: copper, six years) combined with from University of Twente in the Netherlands. He also iron, zinc and the economic conse- completed the Advanced Management programme especially gold quences of COVID-19 at Harvard Business School in the United States. and climate change.

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SWISSQUOTE MARCH 2021 ANALYSIS SWISSQUOTE MARCH 2021

The Hipgnosis Songs investment fund acquired the ANALYSIS rights to Shakira’s THE VIEWPOINT OF SPECIALISTS catalogue. The singer, pictured here with Jennifer Lopez at the Super Bowl halftime concert at FOCUS JOHN ANGELILLO / UPI NEWSCOM Hard Rock Stadium in Miami Gardens on 2 February, 2020. Songs: the popular new asset class Musical artists’ catalogues are being targeted by investment funds, which are attracted by the royalties and predictable returns.

BY ANGÉLIQUE MOUNIER-KUHN

eceive a regular return by in- 2020, was valued at more than IPO in July 2018 and a capitalisa- the rights to songs by Blondie, the portfolio (i.e. monitoring their But it is difficult, or maybe even R vesting in the enduring success $300 million by the US press. But tion of £1 billion (January 2021). In Barry Manilow and Mariah Carey. visibility and promoting their use) impossible, to accurately analyse of our favourite songs… This is the traditional music industry players late September 2020, the company can be a source of capital gains. In the trend, since the amounts of promise of a growing category are no longer the only ones inter- announced it had invested £1.18 bil- Another fund recently went public: 2020, the Hipgnosis fund, which pays these musical transactions are of investment vehicles: funds that ested in these types of deals. In lion so far to build its library of 117 Round Hill Music Fund, an offshoot 4.17% in dividends, saw its share never made public. Last summer, the invest in the discographies of mu- early January, the private equity catalogues and 58,000 songs. In the of the eponymous US music pub- price increase by 12%. This is a re- Wall Street Journal said that these sical artists in order to profit from platform KKR – known more for its first two weeks of the year alone, in lishing company that already owns markable performance compared to deals are commanding multiples of the royalties of each song. These investments in companies struggling several private royalties funds with the downturn of the FTSE 250 (the around 10 to 18 times their annual royalties can come from streaming to reach their potential – acquired songs by the Beatles, Celine Dion 250 UK companies whose capital- royalties depending on the catalogue services, radio play, album sales, or a majority stake in the extensive and the Rolling Stones. The IPO isation is between 101st and 350th and musician, compared to between placements in films, advert spots or catalogue of Ryan Tedder, singer In 2020, the raised £212 million on the London place), which recorded a 6.4% loss. eight and 10 times previously. video games. While artists selling of pop-rock group OneRepublic. Hipgnosis fund, Stock Exchange in November 2020. Round Hill Music Fund has gener- some or all of their catalogues and That same week, Hipgnosis Songs, ated nearly 4% growth since its IPO Hipgnosis credits all the assets in the associated rights is not a new another investment firm, announced which pays 4.17% These funds are an example of a and set a dividend target of 4.5%, its portfolio to an acquisition multi- phenomenon, the market has seen that it had acquired all 145 songs in in dividends, saw relatively simple investment theory: a blessing in this time of negative ple of 14.8 (+1.2 compared to March unprecedented activity recently. Shakira’s catalogue and their associ- its share price in the era of paid streaming (56% of bond yields. 2020), but this figure could not be In the past year, barely a week has ated content rights. revenue in the global music indus- verified. This artistic vagueness is gone by without a well-known artist, increase by 12% try according to IFPI, the industry’s Since musical artists cannot hold concerning to analysts from Stifel, from various eras past and present, The deal with the Latin bombshell promotion organisation), songs that live concerts due to the pandemic, one of the rare firms that follows concluding this type of transaction. is just the latest in an astonishing are well-loved by the general public they have lost a significant source this industry. In a note published series of acquisitions. Created and addition to the Shakira deal, Merck generate predictable revenue that of revenue. It’s a safe bet that many in January, it downgraded its rec- Universal Music Publishing Group managed by Merck Mercuriadis, a Mercuriadis also signed contracts is uncorrelated with the economic will seek to monetise their art by ommendation for Hipgnosis shares purchased the rights to Bob Dylan’s music industry professional who for the rights of producer magnate situation. Music is consumed in both selling their song rights. They will be from “buy” to “neutral”. It questions catalogue: nearly 600 songs – rep- once managed Beyoncé, Iron Maiden Jimmy Iovine (Eminem, Lennon, good and bad times, as the corona- even more encouraged to do so now in particular the fund’s valuation resenting the Nobel-winning artist’s and Elton John, Hipgnosis is par- Springsteen), Fleetwood Mac gui- virus crisis has made clear. Further- that catalogue valuation has gone methods and is worried about the entire discography. The transaction, ticular in that it is public on the tarist Lindsey Buckingham and rock more, the funds are proof that an up again, after sinking for more than general lack of transparency preva- which went public in December London Stock Exchange, with an star Neil Young. Hipgnosis also holds “active management” of songs in a decade due to illegal downloads. lent in the music industry.

18 19 ANALYSIS SWISSQUOTE MARCH 2021 ANALYSIS SWISSQUOTE MARCH 2021

into shares of the issuing compa- more than 25% of the $477.5 billion Another factor is likely to satisfy ny. So it’s a hybrid security that in total convertible capital, accord- investors’ appetite for convertible combines the characteristics of ing to BofA Merrill Lynch Global bonds. Slowly but surely, these FOCUS both bonds and shares. This gives Research. That partly explains the securities are joining the shift to- convertibles an asymmetric return impressive outperformance of con- wards meeting ESG (environmental, profile compared to traditional vertibles last year, especially when social and governance) criteria. Last shares. In financial jargon, that’s stock markets recovered. year, the European primary mar- referred to as convexity. But in fact, ket launched its very first “green” we could call that a good compro- In these early days of 2021, it seems issues, including those in France by mise: the convertible bond gives the risky to expect that this feat could Neoen, a renewable energies produc- Convertible bonds: investor the option of capturing part be repeated in the same proportions. er, and by electricity giant EDF last of the growth on equity markets, But based on experts’ analysis of September. Set to finance projects while limiting the investor’s risk of potential downside risks that could that contribute to the ecological capital loss with the fixed income impact the market, indicators are transition, this €2.4 billion “jumbo” back in fashion part. Available to individual investors pointing upwards. “Growth stocks size operation marked both the larg- via diversified funds, these securi- are expected to continue to bene- est convertible bond issue on the Halfway between equities and bonds, this hybrid security ties effectively fulfilled their role fit from the accelerated transition European market since 2003 and outperformed most other asset classes in 2020. And that to absorb market shocks between to the digital economy. If the good the world’s largest green issue ever. performance is expected to continue in 2021. February and March 2020. During news announced at the end of 2020 those tumultuous weeks as stock materialises, namely protection Of course, no one knows what the BY ANGÉLIQUE MOUNIER-KUHN markets crashed, the Refinitiv offered by the vaccine, stocks from COVID-19 pandemic holds in store. Global index curbed its decline to more cyclical sectors, i.e. those “2020 has proved that extreme 20% while the MSCI World plummet- companies that urgently resorted to events can remain out of our con- ed 31%. the convertible market last spring, trol. Another reason why we should should also benefit from a recovery include securities in our portfolios For issuers, convertible bonds effect,” Marc Basselier points out. that have demonstrated their ability provide a source of financing at a to capture market gains while sof- hey had become a sea snake, at Union Bancaire Privée (UBP). The Bond (EUR hedged) up 6.2%, com- reasonable cost. Due to the conver- The outlook is all the more encour- tening the blow of market declines,” overused in financial fore- figures speak for themselves: the pared with a 1% decline for the sion option, coupons paid to security aging given that intrinsic values says Scarlett Claverie-Bulté. T casting. Between unpredict- Refinitiv Global Convertible Bond Stoxx Europe 600 NR (EUR hedged). holders are lower than for tradition- are adequate. “Usually, such strong able volatility, equity valuations (EUR hedged), one of the most widely Meanwhile, the primary market had al bonds. This makes convertible performance would drive up the encouraging cautious investment, monitored indices among profes- not shown such vigour since the bonds particularly popular with high- valuations of convertibles... as much and increasingly rare opportunities sionals, shot up 32%, outperforming last major financial crisis in 2008. growth companies. These firms pre- as 3% to 6% above fair values, but for returns on fixed income markets, the MSCI World Net TR (EUR hedged) At the end of November 2020, total fer to minimise their financial costs this did not happen. The signifi- each year promised to be the year issues came to $154 billion, well – coupon payments – and funnel as cant primary market liquidity kept of the big comeback for convertible above the approximate $100 billion much of the funds raised as pos- valuations low.... So there is scope bonds. And each year ended, looking issued every year over the past sible into financing their develop- for positive performance in the back at a lacklustre performance. decade. “The coronavirus crisis has ment. Even though the universe has event of either strong or weak equity Except that in 2020, to the great compelled companies in industries diversified with the arrival of new markets,” experts at Schroders said satisfaction of supporters of the such as tourism, transport and retail issuers in 2020, tech companies in a December article on the outlook hybrid asset class, the prophecy “2020 was clearly a to issue convertible bonds in order remain over-dominant. At the end of for 2021. finally came true. Even more excit- memorable year for to meet urgent cash needs, as their November 2020, they accounted for ing, performance shows no sign of convertible bonds” revenue streams suddenly dried stopping in 2021. Scarlett Claverie-Bulté, up. And the primary market has investment specialist at the advantage of being much more “2020 was clearly a memorable year Union Bancaire Privée (UBP) responsive than the traditional bond for convertible bonds, at all levels. market,” explains Marc Basselier, In terms of performance, convertible head of convertible bond manage- bonds stood out spectacularly dur- ment at UBP. ing both the stock market correction and bullish phases, which is even global equity index (up 11.9%) by To understand why, we need to more remarkable. Issuance records 20 points. The European convertible go back to basics. Convertible were also broken,” says Scarlett bond market also came out a winner, bonds are debt securities Claverie-Bulté, investment specialist with the Refinitiv Europe Convertible that can be converted

20 21 ANALYSIS SWISSQUOTE MARCH 2021 ANALYSIS SWISSQUOTE MARCH 2021

In the background, the view of the City from London City Hall. Many analysts INTERVIEW predict a revival of the UK economy in 2021. “UK stocks are highly undervalued” The uncertainty surrounding Brexit is over, meaning investors are now free. Time for the market to recover.

BY JULIE ZAUGG ISTOCK

After long being overlooked due to the uncertainty As the UK is one of the first countries to roll out a The pound is expected to regain some of its of the year, I’d go for the travel firm TUI, the about Brexit, UK stocks are finally regaining strength. COVID-19 vaccine, a large portion of its population value in 2021, which would produce a neat cap- fitness group The Gym Group, the pub chains They are ideal for investors seeking value over growth. has already been vaccinated. How will an end to the ital gain for investors who buy UK shares now. Marston’s and Young’s, as well as retailers with Joachim Klement, investment strategist at Liberum pandemic impact UK equities? a lot of physical stores, like Next and JD Sports. Capital, explains why the FTSE 100, the share index of I’m very optimistic about their potential. They’re How will the composition of the FSTE 100 affect its The valuation of these firms will explode in the the 100 UK companies with the largest capitalisations currently highly undervalued and present a lot performance in the coming months? second half of 2021. However, I’m more scepti- on the London Stock Exchange, is expected to return of opportunities for investors. FTSE 100 shares 2020 was a particularly good year for high- cal about a company like Rolls Royce, as orders to form. are trading at 15 times their earnings (P/E ratio growth stocks, such as technology, media and for aircraft – and therefore for the engines the = 15), compared to a P/E of 23 for the S&P 500 telecom companies. They didn’t suffer as much, company produces – are not going to recover Now that the United Kingdom and the European Union and 18 for Euronext. But they will recover later and sometimes even benefited, from the pan- any time soon. have come to an agreement, uncertainty around Brexit this year as the UK economy emerges from the demic, which increased their value. But 2021 will has finally dissipated. How will that affect the FTSE 100? deep recession caused by the COVID-19 crisis. be the year of value investing (ed. note: taking And what about dividends for investors who want The idea of leaving the European Union (EU) As soon as lockdown restrictions are lifted, the a medium- to long-term strategy by investing in exposure to the FTSE 100? without a deal has been hanging over the British will rush back to pubs, fitness centres and undervalued stocks), so most of the constitu- The UK is moving towards 0% interest rates. ­United Kingdom (UK) for the past four years. stores, generating a strong economic recovery. ents of the FTSE 100 are a good place to start. This is now the norm in countries such as Many investors had stopped trading on the FTSE 100 stocks will also benefit from the recov- The food service, physical retail and transporta- Switzerland or Germany, but it is a new thing FTSE 100 because of this uncertainty. To com- ery elsewhere in the world. The index includes tion sectors, as well as mining, oil and commodi- across the Channel. Many UK companies are pensate, they’re now showing a lot of interest many companies operating in raw materials, es- ties, are well represented. Currently undervalued, likely to take advantage of this and scale back in FTSE stocks, which will drive up demand in pecially metals. Demand is expected to be strong these firms are expected to soar this year. How- their dividend yield. While often as high as 3% the months to come. Many of these companies for these materials from China, whose economy ever, high-growth stocks have already priced in a in the past, it probably won’t exceed 2% or operate internationally and have held back is already on the road to recovery. The FTSE 100 sort of COVID-19­ premium, which will gradually 2.5% in the future. from investing in machinery or renovation in could even grow by as much as 20% in 2021. vanish as we emerge from the pandemic. recent years due to all the unknowns regard- ing the future of their exports. The value of It’s not just stocks that are undervalued. The pound Tell us more about the best opportunities for investors these “lost” investments is estimated at £5 sterling is also very low. on the FTSE 100. billion. With the Brexit deal, companies will Yes, the pound is estimated to be trading at 10% I’m highly in favour of the mining groups BHP Bil- start investing in equipment once again. That below its actual value, compared to the euro. It liton, Glencore and Anglo American over the next JOACHIM KLEMENT will stimulate growth for industrial manufac- is also undervalued against the US dollar and the 12 months. I’d also recommend the packaging INVESTMENT STRATEGIST turing and machinery firms, and there are a Swiss franc. That’s a huge advantage for foreign manufacturer Mondi Group and the manufactur- LIBERUM CAPITAL lot of them on the FTSE 100. investors interested in trading on the FTSE 100. ing group Melrose Industries. In the second part

22 23 PORTRAIT SWISSQUOTE MARCH 2021 PORTRAIT SWISSQUOTE MARCH 2021

This Zurich-based company saw sales skyrocket in 2020 thanks to its antiviral treatment for textiles. At the end of the year, it went public on the London Stock Exchange. HeiQ: BY JULIE ZAUGG

n 23 January 2020, 11 million residents of the Swiss Wuhan were placed un- der a strict lockdown and Ovideos began circulating on Chinese social media. They showed long lines hero of at A&E, dead bodies abandoned in hospital corridors and people collaps- ing in the middle of the street. From Zurich, Carlo Centonze watched it all high-tech with a mix of terror and disbelief. He quickly realised that the world was about to enter a new pandemic. “We decided to pull from our archives a masks technology we developed in 2013 during the Ebola epidemic,” said the co-founder of HeiQ. When the haemorrhagic fever was rampant, the company, which specialises in inno- vative textiles, developed an antiviral treatment called Viroblock that could be used on surgical masks, medical gowns and gloves. Viroblock was used particularly widely in Guinea.

IN NUMBERS This product makes masks at least 30 +95% $10.5 BN 500 M 200+ times more effective The price increase of The total value The number of clothes The number of against COVID-19, HeiQ shares from its of the antimicrobial that are treated each different products compared to an IPO in early December textile industry year with HeiQ Pure in HeiQ’s collection untreated mask 2020 to late January technology, which neutralises odours

Once the Ebola crisis passed, how- ever, there was low demand for this type of product. “We put this tech- nology away again,” said Centonze. But as soon as coronavirus appeared, it was ready and waiting to be used. “We began large-scale production in HEIQ

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six weeks,” he said. In March 2020, makes masks at least 30 times more bacteria within 20 minutes, according HEIQ Co-founder and CEO HeiQ began supplying the first antivi- effective against COVID-19 compared to a test conducted by Zurich compa- of HeiQ, Ticinese ral masks. Since then, demand has to an untreated mask. It also solves ny Microbe Investigations. Carlo Centonze poses exploded. “Now, more than 1 billion the problem of its contamination with his daughter, wearing masks masks have been treated with our when placed on a surface that con- Viroblock is not the first treatment treated with the Viroblock solution,” said the CEO. tains the virus or when it’s touched. of this type on the market, but it company’s antiviral “It is even used on Burberry cloth is the most durable. “Viroblock is technology. masks and gloves made by the effective for up to 30 washes at a brand Cornelia James, worn by temperature of 60 degrees, where- Queen Elizabeth II.” as most similar products degrade “The leaders of sooner,” said René Rossi, a specialist Viroblock was also produced in HeiQ are top-notch in innovative textiles at the Swiss spray form to be used on surfaces. scientists, but they Federal Laboratories for Materials The W Hotel in Verbier is the first Science and Technology. establishment to use it. “We sprayed are also very good the entire hotel,” said Pierre-Henri at business” This product now makes up more Bovsovers, the general manager. Paul Jourdan, CEO of than half of all sales for HeiQ, but it “Disinfecting a room takes less than Amati Global Investors is far from the only innovation in its one minute and after a few weeks, pipeline. The company was creat- we reapply the spray once a month.” ed in 2005, following a long hike completed by Carlo Centonze and his To ensure the efficacy of the prod- The Viroblock technology consists colleague Murray Height from ETHZ. uct, HeiQ called on the Peter Doherty of a combination of silver molecules “We had only one t-shirt each,” said Institute, which is affiliated with the – which attract viruses with an oppo- Centonze. “Suffice to say after five University of Melbourne. “We test- site charge and destroy them – and days of hiking, our shirts didn’t smell ed samples of fabric treated with vesicles, which break down the viral very good.” Viroblock and found that the product membrane by reducing the amount killed 99.98% of the SARS-CoV-2 virus of choleste­rol. It is also effective Centonze and Height decided to put Today, the company has 130 em- “They are gifted at finding gaps in the can also be used in mattresses, air after 30 minutes of exposure,” said against other pathogens (avian flu, their scientific knowledge to good ployees and more than 200 available market and providing solutions.” filters, aeroplane seats and furniture. Julie McAuley, the researcher who H1N1) and bacteria. For example, it use and developed an antimicrobial products. It supplies products to conducted the tests. This product destroys more than 99.5% of staph molecule – made from silver – that more than 300 brands, including In the future, Jourdan believes that HeiQ will also benefit from the neutralises odours in fabrics. They big names such as Zara, Uniqlo, Gap, the Viroblock technology will continue growth of the rest of its portfolio. signed their first contract with sport Patagonia, The North Face and to drive sales for HeiQ. “The COVID-19 “The fashion world is increasingly clothing manufacturer Odlo, and then Puma. In December 2020, it went pandemic is far from over and even interested in functional textiles,” another with medical group B. Braun, public on the London Stock Exchange, when it is, people will be used to said Centonze. The textile chem- DUCK FEATHERS AND RADIANT HEAT which used their solution to create raising 70 million Swiss francs. wearing masks. It will continue to icals market is expected to grow HeiQ specialises in innovative coatings that can change a net that could be implanted in a be part of their routines, like in Asia 4.5% yearly to reach $30.7 billion by the properties of textiles. Its product EcoDry imitates hernia patient to minimise the risk This success is particularly due to after the SARS epidemic in 2003.” 2025, according to the firm Grand duck feathers by creating a microscopic 3D structure on of infection. its model combining cutting-edge According to him, the technology View Research. HEIQ the surface of fabric that repels water droplets. Similarly, innovation and large-scale production textiles treated with Fresh solution can filter air and Named HeiQ Pure, the technology capacities. “We have partnerships with extract cancerous volatile constituents released by glues, was soon followed by a series of 15 universities and provide scholar- rugs and furniture, using natural light as an energy ANALYST ADVICE source. Ikea used this product in a line of curtains. specialised coatings that make ships to doctoral students from all fabric waterproof or reproduce the over the world,” said Centonze. The HeiQ also has a number of smart textiles, such as soft feel and glossy look of silk. HeiQ company also has its own factories. ENORMOUS GROWTH POTENTIAL Smart Temp, which contains polymers that react to also created a line of smart textiles In late 2019, it acquired Spanish mask body temperature and can cool down the fabric – by HeiQ sales more than doubled in the first six months of 2020, thanks in large part that regulate body temperature and manufacturer MasFabEs to be able to to sales of Viroblock. This trend is expected to continue in 2021 at a slightly lower 2.5 degrees – when body temperature reaches a certain retain heat, as well as solutions to produce its own masks. level. Uniqlo uses this technology in some of its clothing. rate as the pandemic subsides, according to financial analysis group Cenkos, Another example is the Xreflex insulating system, which reduce the environmental footprint of which notably served as a broker to coordinate the company’s stock market reflects and retains radiant body heat, keeping the wearer polyester dyes. “HeiQ’s assortment This structure allows HeiQ to inno- listing. The company’s other products – HeiQ Fresh, HeiQ Smart Temp and its warm. With this technology, coats can be two times thin- of products is a treasure trove. Its vate very quickly: it generally takes eco-friendly polyester dye solution – will also see strong growth, approximately ner but still just as warm. In the future, the Zurich-based technologies are diversified and very 18 to 24 months from the discovery 15% according to the firm. Cenkos also highlights HeiQ’s high margins (+59% company plans to diversify and develop industrial high-quality,” said Paul Jourdan, CEO of a new technology to placing it on expected in 2020), which are 10 to 15 points higher than its competitors (other applications, particularly because of a current product big names in the chemical industry such as Dow, BASF and Du Pont, as well as of Amati Global Investors. “And there the market. “The leaders of HeiQ are companies developing innovative textiles such as Lycra, Polygiene and Gore-Tex). in development – a highly porous graphene membrane that are already several promising innova can produce more powerful batteries or desalinate water - top-notch scientists, but they are also In the medium term, Cenkos believes that HeiQ will be able to increase its revenue at a lower cost. tions in the pipeline.” very good at business,” said Jourdan. from $30 million to $300 million per year. It recommends purchasing shares.

26 27 GENETICS SWISSQUOTE MARCH 2021 GENETICS SWISSQUOTE MARCH 2021 NEIL WEBB

DOSSIER THE GENETICS BUSINESS IS BOOMING The cost to analyse the human genome has plummeted, opening the door to many medical and also recreational applications. We examine a phenomenon combining science, business and ethics...

BY BERTRAND BEAUTÉ

34. Infographic: ur vocabulary expanded genetics, a journey considerably in 2020. from the lab to our We now talk about PCR everyday lives O tests, sequencing and messenger RNA over family dinners, 38. RNA vaccines: as if this scientific terminology an incredible were part of everyday language – all breakthrough thanks to the coronavirus. We have also begun discussing genetics. 42. Interview with Although this change could initially Steve Pascolo, appear to be due to the current sit- an mRNA pioneer uation and expected to soon pass, it actually reflects a more profound 44. Winners of shift. Genetics, a subject which has Dossier prepared by : the genome long been confined to specialised Bertrand Beauté and revolution laboratories, is starting to move be- Stanislas Cavalier yond the science world and become 52. DNA: mass-market part of our daily lives. testing goes wild “Genetics is playing an increasingly 56. The astounding important role in medicine. It’s a rap- potential of idly expanding field,” says Professor synthetic biology Marc Abramowicz, head of the Genetic

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Medicine division at Geneva Universi- And the imapcts of this trend have Since the start of the pandemic, Cloud giants are eagerly waiting ty Hospitals (HUG) and director of been felt on the stock market: in sequencing has become extremely the Centre for Genetic Medicine. “Ap- 2020, ARK Genomic Revolution – an important because it can be used proximately 5% of the population has ETF from asset management firm to track variants of the SARS-CoV-2 a genetic disease, and often doesn’t ARK Invest that includes about 50 virus. But it also has potential in The study of the human its platform Amazon Elastic know it. That’s really high, affecting genetic engineering stocks – in- human medicine. Studying the human genome generates a gigantic MapReduce (EMR), have devel- 400,000 people in Switzerland.” creased 180%, whereas the NASDAQ genome has made it possible to mass of data, and the quantity oped powerful genome storage rose by 43% over the same period. detect small changes that play a doubles each year, accord- and analysis tools that can And medicine is far from being the only This increase could continue, since role in the origin or development ing to a study published in interpret genetic mutations. domain affected by genetics: “Since the potential of these technologies of diseases. the Journal of Informatics in They compete with proprietary DNA is present in all organisms – both seems limitless. For evidence, look Health and Biomedicine in July systems from research labs plants and animals – there are many no further than the internet. In just In 30 years, mutations in nearly 2020. This has caused web and hospitals, open-source applications for genetic engineering, a few clicks, you can order a DNA 4,000 genes were linked in varying giants to take an interest in platforms such as Hail, and particularly in farming and the seed analysis kit that reveals your gene- degrees to more than 7,300 dis- this particular cloud sector. services from sequencing pure industry,” says Hervé Chneiweiss, alogical origins or predispositions eases, according to figures from Google, via its service Cloud players such as Illumina and chairman of the Ethics Committee at to diseases, or even how to improve HUG. This number will only continue Life Sciences, and Amazon, via Thermo Fisher Scientific. France’s health research organisation your athletic performance (see also to grow, as scientists are able to Inserm [Institut national de la santé p. 52). identify 200 genes each year whose et de la recherche médical]. “It’s not mutations are linked to a pathology. a niche market. In fact, it’s worth “We can now diagnose hundreds of hundreds of billions of dollars.” genetic diseases,” says Abramowicz. Technological “Sequencing has become a common advances have medical test.” made genetics But reading the entire genome is 1996, US company Myriad Genetics sector but instead fell into the often not necessary in medicine. launched the first test to deter- hands of private laboratories,” says accessible to For the simplest pathologies that mine predisposition to breast and Abramowicz. “Conversely, hospitals only involve a few very precise mu- ovarian cancer, and it is one of still handle the more advanced anal- everyone tations, companies have developed the most prescribed tests in the yses that require sequencing a large low-cost tests that only analyse world today. “The simple, lucrative part of the genome and cost CHF a specific part of the genome. In tests never made it to the public 5,000 to 6,000 per patient.”

Élise, a student in Zurich, has first- hand experience. In November 2020, she took advantage of a deal on the site MyHeritage and ordered a The stunning drop in sequencing prices genealogical DNA test for about 50 Swiss francs. “I am Swiss, but I have mixed European and South American $100,000,000 heritage,” she says. “I wanted to un- Reading the entire human genome now

derstand the biological components $10,000,000 costs less than $700. Previously strictly of my identity.” reserved for research, sequencing has now become a common medical process. Can a DNA analysis give you a better $1,000,000 understanding of yourself? Not long

ago, this was strictly the stuff of $100,000 science fiction. But technological advances have made genetics acces- sible to everyone. In 2001, reading $10,000 the entire human genome – a pro- cess called sequencing – cost $100 $1,000 million and took months. Today, the latest machines can complete the same operation in just a few hours, $100 for less than $700 (see infographic 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

on p. 31). Source: National Human Genome Research Institute

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Key words in the dossier According to Global Market Insights, DNA the global medical genetic testing Markets abound Deoxyribonucleic acid, or DNA, is a molecule market, which was virtually non-ex- found in every animal and plant cell. DNA stores istent 20 years ago, was worth over the genome, which contains the complete set $13 billion in 2019, and is expected The use of DNA offers many commercial opportunities, of instructions for living beings to develop and to grow to more than $28.5 billion some of which are currently booming. A selection below. function. However, in certain viruses, such as by 2026. This potential has not gone SARS-CoV-2, the genome is made of ribonucleic unnoticed by companies that are acid (RNA). DNA molecules come in the shape of two strands twisted around each other to more interested in lucrative business form a double helix. than patient health. Founded in 2006 by Anne Wojcicki (the former spouse of a Google co-founder), 23andMe GENOME was the first company to sell DNA The genome is all the genetic material of an or- tests directly to consumers without ganism encoded in its DNA. The genome is often a prescription. Health is just one of compared to a book, written with four letters (A, C, G, T) that stand for adenine, cytosine, guanine the product areas being explored by $21.26 BN $21 BN and thymine, the four bases (nucleotides) that 23andMe, which focuses primarily on make up DNA. genealogical testing. The value in 2018 of the The value of the global global market in human in- genetically-modified SEQUENCING sulin, the main treatment for seed market in 2018 If the genome is a book, sequencing is the method These are just diabetes. Indeed, it is thanks for reading that book. In other words, determining to a genetically modified the sequence of the four letters (A, C, G, T) some of the bacterium that artificial that make up DNA. The human genome is made insulin can now be produced of 3.2 billion pairs of letters. companies active in the RNA recreational Ribonucleic acid, or RNA, is a molecule found in virtually all living things that is involved in cellu- DNA market – lar metabolism. Like DNA, RNA consists of four a sector letters (A, C, G, U), but contains uracil instead of thymine present in DNA. RNA has only a single that is even strand, which makes it less stable than DNA. $8.4 BN $13 BN Note: several types of RNAs exist, but here only attracting messenger RNAs are discussed. investment The value of the market for The value of the medical genetic the PCR method, which is used testing market in 2019. It is funds among other things for certain expected to reach $28.5 billion MESSENGER RNA diagnostic tests, in 2019. It is in 2026, according to Keeping with the analogy of the genome, or DNA, being a book stored in a library (the cell nucleus), expected to reach $13.8 billion Global Market Insights And it is not alone: MyHeritage, in 2027, according to the firm messenger RNA is like a photocopy of a page from Ancestry, FamilyTreeDNA are just that book. Once taken out of the library, this pho- Verified Market Research tocopy can be used as the basis for instructions on some of the companies active in the how to make proteins, before being destroyed. recreational DNA market – a sector that is even attracting investment funds. In August 2020, Blackstone PCR spent $4.7 billion to acquire the Cells contain a small amount of DNA. The Polymer- site Ancestry.com. Meanwhile, ase Chain Reaction (PCR) is a method used to make enough copies of a DNA fragment that allow it to be 23andMe is expected to go public $8.41 BN $1.24 BN studied. For example, PCR is used to measure the soon, through a SPAC – a transac- viral load of HIV patients. tion that would value the company The value of the global The value of the market at $3.5 billion. This proves that ge- sequencing market in 2020. for direct-to-consumer netics has become a real business, It is expected to surpass DNA tests in 2019 RT-PCR and DNA is now just another item $40 billion by 2030, Derived from PCR, RT-PCR (reverse transcrip- of data that can be ordered online according to the firm tion-polymerase chain reaction) is a technique Precedence Research for producing RNA strands. The process gained with a smartphone, read, shared widespread public attention in 2020, as it is used and sold. in diagnostic testing for SARS-CoV-2.

32 33 GENETICS SWISSQUOTE MARCH 2021 GENETICS SWISSQUOTE MARCH 2021 GENETICS: A JOURNEY FROM THE LAB TO OUR EVERYDAY LIVES

Genetics has long been the subject of fundamental research, but it has now become a flourishing business. Here’s the story. BY BERTRAND BEAUTÉ 1978 The bacterium 1977 Escherichia coli (E. coli) British biochemist 1960 is genetically modified Frederick Sanger to produce human insu- French Nobel laureates develops the first DNA 1953 Jacques Monod and lin. In 1982, this artificial sequencing technique, insulin becomes the first James Watson, Francis François Jacob discov- which can be used to Crick, Maurice Wilkins er messenger RNA, a commercial application read the genome. For of genetic engineering. and Rosalind Franklin single-strand copy of this discovery, he discover the double DNA that can be used receives his second helix structure of DNA, to produce proteins in Nobel Prize in Chemistry 1944 which makes it pos- cells. In 2020, messenger in 1980. American scientists sible to understand RNA becomes famous, 1869 Oswald Avery, Colin how DNA replicates. In because it is used to cre- MacLeod and Maclyn 1865 DNA is isolated for the 1962, Watson, Crick and ate certain coronavirus McCarty discover that The Austrian monk first time by Swiss doctor Wilkins received the vaccines. Gregor Mendel, common- Friedrich Miescher. He the DNA molecule is Nobel Prize in Medicine ly known as the father named the substance the basis of heredity. for this discovery, which of genetics, studies pea nuclein. laid the foundations of plants and discovers the modern genetics. hereditary transmission of certain characteris- tics, such as if the pea is wrinkly or smooth.

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1991 US company Myriad 1984 Genetics is created. In British researcher Alec 1996, it releases the first Jeffreys develops a test that could indicate a 2003 1983 procedure that can iden- American chemist Kary predisposition to breast After 13 years of work, tify an individual using cancer, based on analy­ the full sequencing of 2007 Mullis invents the poly­ the variations in their US company 23andMe ­ 1982 merase chain reaction sis of mutations in the the human genome is The first genetically-­ genome. In 1986, this BRCA1 gene. complete. This immense becomes the first (PCR) technique and genetic analysis is used company in the world to 2012 modified animal is cre- effort cost $2.7 billion Scientists Emmanuelle wins the Nobel Prize in to identify a murderer for market genetic testing ated – a giant mouse to and involved more than Charpentier (France) and 1993. This method can the first time. to the general public, which the growth hor- 20 research centres. To- Jennifer Doudna (US) de- exponentially duplicate a to enable them to trace 2020 mone gene from a rat had day, the latest machines velop CRISPR-Cas9, a ge- DNA sequence in vitro. By their ancestors. The Developed in less than a been transferred. The can complete the same nome-editing technique. solving the problem of low saliva test was named year – a record – COVID-­ first transgenic (GMO) operation in just a few This method could cure quantities of available the “Innovation of the ­­19 vaccines made from plant was produced a hours, for less than $700 many diseases, since DNA, PCR revolutionises Year” by Time Magazine messenger RNA become year later. (see p. 31). it corrects the genome molecular biology. Today, in 2008. available on the market. a variant of this method more precisely than tradi- Messenger RNA tech- (RT-PCR) is used in coro- tional gene therapies. For nology is presented as navirus diagnostic tests. this discovery, the two a therapeutic revolution researchers receive the that could completely Nobel Prize in Chemistry change many medical in 2020 (see p. 46). fields such as oncology.

36 37 GENETICS SWISSQUOTE MARCH 2021 GENETICS SWISSQUOTE MARCH 2021 RNA VACCINES: AN INCREDIBLE BREAKTHROUGH

The pandemic has forced vaccine research into a new era of messenger RNA therapies – a revolution that big pharma did not see coming, overtaken instead by innovative biotech companies. BY BERTRAND BEAUTÉ

Unlike traditional ioNTech from Germany and vaccines, mRNA Moderna from the US. Two solutions must be biotech companies, virtually stored at a very low B temperature (-70 ° unknown to the general public a year for BioNTech’s ago, have now won the coronavirus vaccine, -20 ° vaccine race. Their success is thanks for Moderna’s). A logistical to messenger RNA (mRNA). By using challenge that will this innovative technology that has be the business been sitting (or maturing) for more of refrigerated transport specialists, than 30 years in laboratories, the according to UBS. two companies have revolutionised Here, the German the vaccine sector (read an interview company Va-Q-Tec with Steve Pascolo on p. 42). “It’s which has developed refrigerated a bit embarrassing for big pharma,” containers to smiles Pierre Corby, a health analyst transport BioNTech’s at Union Bancaire Privée (UBP). “They vaccine. were beaten by two unknown start- ups.” Comparatively, the vaccine produced by Sanofi (ranked number 3 in the world for vaccines) will not be ready until the end of 2021 – a year after Swissmedic approved the BioNTech vaccine! ALEX KRAUS/BLOOMBERG / GETTY IMAGES

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Of course, none of this would be catalyst for this technology. Without In phase III trials, the RNA vaccines PRICE WAR possible without “Operation Warp it, we would have had to wait until from BioNTech and Moderna achieved In mid-December, the Belgian vaccine at only 1.9 Swiss francs Speed”. Launched in mid-May by 2024 for BioNTech or Moderna prod- an impressive efficacy of nearly State Secretary for the Budget, Eva per dose. This difference doesn’t Donald Trump to accelerate the ucts to be available.” 95%, whereas the traditional vaccine De Bleeker, caused an uproar when shock Pierre Corby, analyst at UBP: development of coronavirus vaccines, developed by AstraZeneca/Oxford is she tweeted the prices paid by “Innovation costs money. It’s to be this project played a major role in only 70% effective. “I would be sur- the European Union to pre-order expected that the messenger RNA vaccine development. Between 2010 prised if other COVID-19 vaccine can- COVID-19 vaccines. At nearly 16 vaccines are more expensive, espe- Swiss francs per dose, the Moderna cially since the production method 600 M and 2020, it took an average of eight didates are able to reach that level vaccine is the most expensive, fol- had to be developed from scratch.” years to develop the 21 vaccines of efficacy,” says Descoutures. But lowed by BioNTech (13 Swiss francs) As many more vaccines arrive on authorised by the FDA during that developing a vaccine is only the first and CureVac (11 Swiss francs). At the market – a dozen products are period, whereas for the COVID-19 “It’s truly impres- step. It also needs to be produced the other end of the spectrum, expected by next summer – prices vaccines, it only took one year, on a large scale and meet pharma- AstraZeneca is selling its traditional are likely to fall. thanks to the $12 billion invested sive,in January ceutical industry quality standards, as part of Warp Speed. 2020, mRNA was which has never been done for still just a concept RNA vaccines. “Washington decided to support that not many several vaccine technologies to max- To achieve this, BioNTech, CureVac 300 M 300 M imise the chances for success,” said believed in” and Moderna – the three most ad- Pierre Corby, health analyst at Martial Descoutures, a pharma/bio- vanced biotechs using messenger Union Bancaire Privée (UBP) 225 M tech analyst at Oddo BHF. “And mRNA RNA technology – had to partner 200 M 210 M technology was the winner.” This with well-established players in the success is even more remarkable industry. Moderna is outsourcing 80% $18 considering that, despite nearly three of its coronavirus vaccine produc- €12 decades of research, messenger tion to the Swiss company Lonza, €10 RNA had never previously been used BioNTech has partnered with Pfizer, $8.50 €7.56 to create a marketable vaccine. The MASS PRODUCTION CHALLENGES and CureVac (whose vaccine is not technology was purely experimental. Compared to traditional vaccines yet approved) is working with its €1.78 (see inset below), the primary ad- compatriot Bayer. Johnson & Moderna CureVac AstraZeneca Sanofi / Pfizer / “It’s truly impressive,” says Corby, vantage of messenger RNA is that it Johnson GlaxoSmithKline BioNTech health analyst at Union Bancaire is a much simpler technology to use: The Pfizer/BioNTech partnership Privée (UBP). “In January 2020, ”Producing an RNA vaccine is faster expects to produce 2 billion doses mRNA was still just a concept that and less expensive than producing in 2021, while Moderna is aiming for Vaccines currently Vaccines currently Number of doses ordered by the EU Price paid per dose not many believed in. Now, we have a standard vaccine,” said Corby. “It’s 1 billion. This will certainly gener- approved in Switzerland unapproved in Switzerland by the EU the first COVID-19 vaccines because a wonderful technology that has ate incredible revenue. According to of it. The pandemic was an incredible become mature.” figures leaked on the internet, the

European Union paid 12 Euros for and 450% respectively in 2020, ana- lopment and BioNTech specialises RNA VACCINE: HOW DOES IT WORK? the BioNTech vaccine and 18 Euros lysts are cautious about the future. in cancer treatments. Messenger for the Moderna vaccine (see info- RNA therapies have only just begun.” graphic above). “Sales won’t be quite as strong The general principle of all virus. The immune response the virus proteins (the spike in subsequent years,” warns Martial Descoutures agrees: “The prophylactic vaccines is to induced by these vaccines is protein, for the coronavirus). “These companies will see lots of Descoutures, “especially since the success of messenger RNA vaccines “train” the immune system generally rather weak. Addi- This mRNA is encapsulated revenue this year,” confirms Corby. price of COVID-19 vaccines could makes the technology credible in to recognise a disease agent tives such as aluminium are in lipids and injected into before the agent infects a per- added to increase the the body. It will then be But no one knows what will happen fall in a year, when many other prod- the prophylactic vaccine sector. I son. If a vaccinated person be- immune response. processed just like any other afterwards. Will the pandemic end? ucts come on the market and com- expect that older vaccines will be comes infected, their body can mRNA that is present in Will the coronavirus become endemic pete with BioNTech and Moderna.” reformulated with this technology. immediately react, preven- But mRNA vaccines cause human cells and turned into and, if so, will people have to have an For other therapeutic applications, ting the disease taking hold. a very strong immune res- protein. Cells produce the vi- injection every year, like the flu vac- But Moderna, CureVac and BioNTech such as oncology, we must remain Traditionally, vaccines are ponse on their own and do not ral protein, which will induce cine? There are still many unknowns have other advantages. “Before the cautious. I think that messenger made up of viruses that have require additives. To produce an immune response. Unlike been rendered inactive in mRNA vaccines, scientists traditional vaccine solutions, at this time.” pandemic, these companies were RNA will work in some cases, but the laboratory, or of a protein create an RNA in the labora- RNA vaccines are completely working on other medicinal candi- not others. As with all treatments in from the protective shell of the tory that is coded for one of synthetic. While the share prices for BioNTech dates,” said Corby. “Moderna has development, there will be successes and Moderna sky-rocketed, by 105% about 20 potential vaccines in deve­ and failures.”

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INTERVIEW “In the early days of my research, back in 1998, no one cared about mRNA. “MESSENGER RNA No one believed in it!” Why was there such a lack COULD BE USED of interest from the scientific community? from one specific tumour protein Unlike DNA, which is very stable, isn’t going to work. You need a TO TREAT ANY mRNA quickly degrades in the human big immune response. In oncolo- body. For this reason, there was a gy, mRNA vaccines will be able to bias against RNA. For a long time, target not just a single protein, ILLNESS” most researchers believed that the as in the case of coronavirus, but molecule was too fragile and that it five to 15 proteins, and possibly would be destroyed by the body be- even more. This type of vaccine is fore it could have any therapeutic or expected to be approved by 2023. As Switzerland approves two COVID-19 vaccines that vaccinal effect. So they preferred to PHILIPPE ROSSIER / BLICK RINGIER use messenger RNA, Steve Pascolo – a researcher at work on the potential of DNA instead. This is not the first time that University Hospital Zurich, an industry pioneer and In my opinion, the fact that RNA STEVE PASCOLO: AN MRNA PIONEER people have used the word a busy entrepreneur – explains the potential for these degrades quickly has always been “revolution” when a new tech- new types of therapeutic solutions. Find out more an advantage. I think that it is After a PhD at the Pasteur Institute in Paris, Steve Pascolo joined nology emerges. At the time, in this interview. more secure, precisely due to the the University of Tübingen in Germany in 1998. Along with seve- gene therapy provoked a similar fact that it is biodegradable. That ral colleagues, he founded German biotech firm CureVac in 2000, response... BY BERTRAND BEAUTÉ reduces the risk of complications. where he held the role of Chief Scientific Officer (CSO). From 2003 With gene therapy, everyone was to 2006, CureVac and the University of Tübingen clinic led the first That said, in the vaccines currently clinical trials of mRNA-based cancer vaccines. calling it a revolution, even though on the market, the biotech compa- the technology had never yielded nies had to encapsulate the mRNA In 2006, Pascolo left CureVac and joined University Hospital results. But mRNA has proven re- teve Pascolo knows messenger who have been studying it for a in lipid nanoparticles in order to Zurich, where he created the “therapeutic messenger RNA» plat- sults, as evidenced by the coro- RNA well. Long before 2020, long time, this does not come as protect it and transport it into cells. form in 2017. As part of the European MERIT programme, he colla- navirus. The revolution happened long before the pandemic and a surprise. It just confirms what borates with German company BioNTech to conduct clinical trials before people even knew about it. S for breast cancer patients. He is also the founder and CEO of the long before the molecule became the we’ve been saying for 20 years: Will we start to see other start-ups Miescher Pharma and spRNA. most talked-about in the world, the in a pandemic, this technology mRNA vaccines? Which companies are best University Hospital Zurich researcher allows us to create a vaccine in We will likely see some older positioned to benefit from mRNA? was already working on the therapeu- a very short amount of time. It’s prophylactic vaccines be replaced CureVac, BioNTech and Moderna tic potential of messenger ribonu- not a coincidence that the first with mRNA versions, because be used to treat Alzheimer’s and molecules that are coded for the are all doing very good work, but I cleic acids (mRNA). In an interview two approved vaccines (from they are safer and much easier Parkinson’s disease. The German identified mutations. This creates think that BioNTech, with whom I with Swissquote Magazine, Pascolo BioNTech and Moderna) use mRNA. to produce. New vaccine products company Ethris, for example, is a vaccine unique to the patient and collaborate, has more guarantees explains how in the span of over It’s because this technology will be developed to fight virus- developing an mRNA nasal spray that results in an immune response that because its portfolio of molecules 20 years, this molecule went from be- is the best tool we have. es that we don’t have solutions can restore lung function to patients is targeted to the tumour. The goal in development is more diversified. ing abandoned by academic research for yet, such as cytomegalovirus with respiratory illnesses. Moderna is both therapeutic (tumour regres- CureVac, which was created in 2000 to being a vaccine solution that could Why did it take so long or Zika. Clinical mRNA vaccine is particularly focused on cardiac sion) and prophylactic (avoiding and is the industry pioneer, has lead to a therapeutic revolution. to emerge? studies are already underway. pathologies; an mRNA injection into relapses after an operation). The always focused on mRNA vaccines. In the early days of my research, a patient’s heart could produce European MERIT project – in which Moderna, which was created in 2010, The first two approved vaccines back in 1998, no one cared about What other illnesses could proteins that repair blood vessels. I am participating with BioNTech originally targeted mRNA-based for SARS-CoV-2 are mRNA vac- mRNA. No one believed in it! We be treated with RNA? And of course, there are high hopes – is also conducting clinical trials gene therapies and only started cines. Does that surprise you? received no public funding and, In theory, there could be an mRNA for mRNA in the oncology field, with breast cancer patients. working on vaccines in 2014. No. The technology has been ready without money, we couldn’t con- solution for any medical condition. with the development of individu- Finally, BioNTech (founded in 2008) for a long time. But the coronavirus tinue our research. Now, everyone The potential of this technology alised cancer-fighting vaccines. So far, cancer vaccines have takes a horizontal approach, and epidemic really sped things up. It is changing their tune and saying seems infinite. For genetic dis- not been very effective... is focused on cancer treatments created global demand and gen- that this technology is amazing. eases such as cystic fibrosis and How does that work? Cancer cells, as well as AIDS cells, in a broad sense. Besides mRNA erated financing that confirmed But it’s not new, it wasn’t pulled Duchenne muscular dystrophy, Doctors take a biopsy of part of are able to escape and hide in technology, it is also developing the potential of mRNA. For the out of a hat. We’ve been working mRNA could be used to create a the tumour and then sequence the the body because they can mutate other approaches, such as cellular small community of researchers in the shadows for 20 years. therapeutic protein. It could also genome. They then produce mRNA many times. So a vaccine created therapy and immunotherapy.

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AND ALSO...

Winners of MODERNA A MEDIA SENSATION The US biotech made all the headlines in 2020 with its mRNA the genome vaccine to fight Sars-CoV2, the second vaccine to be approved by Swissmedic. The company, which is expected to generate nearly revolution $13.2 billion in revenue in 2021 thanks to the vaccine, also has another 15 products in its devel- Offering direct-to-consumer genetic testing, gene therapies, opment pipeline (see Swissquote and even incredible IT storage solutions, the DNA business ILLUMINA Magazine, September 2020). continues to grow. A myriad of companies are taking FOUNDED : 2010 HEADQUARTERS : CAMBRIDGE (US) advantage of it. Here’s an overview. THE FUTURE EMPLOYEES : 820 BY BERTRAND BEAUTÉ 2019 REVENUE : $60.2 M GOOGLE OF MRNA

GENETICS THERMO FISHER THE LAB SUPPLIER ILLUMINA With a touchscreen on top of a black used the Sanger method to sequence The US multinational Thermo Fisher Scientific supplies research A world leader in or white plastic box, Illumina devices DNA. This process, in which each material to laboratories, including sequencing, Illumina look a bit like large printers. Upon letter of DNA (A, G, T, C) is read sequencing devices. In August 2020, supplies machines first glance, it's hard to tell that individually, was long and expen- that can track coro- the company acquired Qiagen – a navirus variants. these machines are the driver of the sive. Illumina had another solution: Dutch biotech known for its diag- Illumina sequenc- genetic revolution. But in fact, they bombarding fragments of DNA with nostic kits and DNA and RNA purifi- ers are present in produce more than 90% of sequencing lasers. Each of the four letters re- cation products – for $12 billion. more than 10,000 data worldwide. In other words, they flected back a different light, making FOUNDED : 2006 laboratories in HEADQUARTERS : WALTHAM (US) 115 countries. read the vast majority of DNA studied it possible to use cameras and al- EMPLOYEES : 75,000 in the world, leaving only crumbs for gorithms to read DNA more easily: in 2019 REVENUE : $25.54 BN Illumina's competitors (Roche, Ther- 2001, sequencing the entire human TMO mo Fisher and BGI). genome cost $100 million, whereas now it costs just $700. The price CUREVAC reduction is so remarkable that it is THE GERMAN PIONEER now referred to as “Flatley's Law” The German biotech, which is devel- in honour of Jay Flatley, the head oping a COVID-19 vaccine currently of Illumina from 1999 to 2016 (see in phase III trials, is a pioneer in the mRNA field. Created in 2000, well To protect its infographic on p. 31). before its competitors BioNTech (2008) and Moderna (2010), it has discoveries, To protect its discoveries, Illumina in its portfolio other prophylactic Illumina filed filed more than 900 patents, monop- vaccines, particularly for yellow fe- more than olising the market. And the company ver, as well as mRNA-based immuno- essentially built an empire, building therapies for several cancers. 900 patents, more than 17,000 sequencers around FOUNDED : 2000 HEADQUARTERS : TÜBINGEN (DE) monopolising the world. But with lower sequenc- EMPLOYEES : 450 the market ing costs, replacing the machines 2019 REVENUE : €17.4 M FOUNDED and selling the related consumables CVAC 1998 is becoming a less lucrative busi- HEADQUARTERS ness. So Illumina is increasingly fo- SAN DIEGO (US) cused on developing cloud solutions EMPLOYEES 7,800 to analyse the data generated by How did the Californian company its systems. The goal is to become 2020 REVENUE $3.236 BN become such a monopoly? To find the the Google of genetic data. Most

ILMN answer, we need to go back to the analysts recommend holding shares, early 2000s. At the time, scientists which rose by 11.5% in 2020.

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EXACT CRISPR TWIST THE SCREENING EXPERT A specialist in genomic cancer THE MOLECULAR SCISSORS THE GOLDSMITH screenings, Exact Sciences has grown considerably in recent years, OF SYNTHETIC DNA acquiring Genomic Health in 2019 for $2.8 billion and Thrive Earlier Detec- When Jennifer Doudna (American) light: the CRISPR-Cas9 system. ‘genetic scissors’ have only been tion in October 2020 for $2.15 billion. and Emmanuelle Charpentier Behind this rather unsophisticated around for eight years, but they To promote the German series expertise in reading DNA, so that the FOUNDED : 1995 (French) were awarded the Nobel name lies a tool that can cut and already hold great promise for Biohackers, released in August 2020, stored data can be accessed (see HEADQUARTERS : MARLBOROUGH (US) Prize for Chemistry in October 2020, modify the DNA of any organism, humanity, offering the hope of Netflix stored the first episode on also p. 45). But the biggest challenge EMPLOYEES : 2,300 2019 REVENUE : $1.32 BN a revolutionary discovery came to including that of humans. “These curing genetic diseases,” explains artificial DNA, synthesized by US is producing synthetic DNA to build EXAS Pernilla Wittung-Stafshede, a mem­ company Twist Bioscience. What a new type of hard drive. And that’s ber of the Nobel Committee, at the if we stored digital data in DNA, where Twist Bioscience comes in. GENOWAY announcement. rather than in the cloud? The rather While the cost of producing synthe­ MUTANT MICE surprising idea is garnering quite an tic DNA remains prohibitive (nearly A small Lyon-based company, To develop these therapies of the interest from digital giants. With $3,500 per megabyte), Twist has genOway creates genetically future, Charpentier founded the its density and very long lifespan, developed a technology that produc- modified lab mice using Emmanuelle Zug-based company Crispr Thera- DNA is an ideal material for storage. es DNA on silicon chips, which could CRISPR-Cas9 technology. This is Charpentier, a booming sector for drug testing, co-founder of peutics in 2013, where she now acts According to an article published in drastically reduce the price. as a scientific advisor. This biotech Science Magazine in 2017, a single so the company has a promising Crispr Therapeutics, potential outlook (see Swissquote being awarded company is the most advanced in gramme of synthetic DNA can store The stakes are high. Beyond data Magazine, September 2020). the Japan Prize in the therapeutic application of the 215 petabytes of data – the equiv- storage, synthetic DNA is seen as April 2017. She later FOUNDED : 1999 received, in October CRISPR system: its drug CTX001, for alent of 100 million films! In 2018, the next big thing in genomics after HEADQUARTERS : LYON (FR) 2020, the Nobel haemoglobinopathies, is the first researchers from ETHZ succeeded in sequencing, since it could have EMPLOYEES : 100 Prize in Chemistry of its kind to have entered clinical storing the entire Mezzanine album applications in a variety of fields 2020 REVENUE : €11 M with her colleague ALGEN Jennifer Doudna. trials, with two patients receiving by Massive Attack on a few strands such as biofuels, biotherapeutics and treatment in early 2019. Preliminary of DNA. “This method allows us to biomaterials. For example, the com- results, published in December 2019, archive music for hundreds of thou- pany Impossible Foods has already BGI were promising. sands of years,” said Robert Grass, used synthetic DNA to produce a LOWER COSTS FROM CHINA professor at ETHZ. Comparatively, haemoglobin-equivalent that makes The news made headlines. In February 2020, the Beijing Genomics music storage on a CD will only last its artificial meat “bloody”. Twist Institute, better known as BGI for about 30 years. Bioscience is currently leading this Group, announced that it could growing market, but several private sequence the human genome for start-ups are hard at work, such as $100, which is seven times less "These ‘genetic DNA Technologies, Eurofins Geno­ than with sequencing machines mics and DNA Script. Most analysts from the global industry leader scissors’ already A single gramme recommend holding shares in Twist, Illumina. FOUNDED : 1999 hold great promise of synthetic DNA which already increased by more HEADQUARTERS : SHENZHEN (CN) than 540% since the start of 2020. EMPLOYEES : 3,600 for humanity" can store 215 2019 REVENUE : $434 M Pernilla Wittung-Stafshede, 300676 member of the Nobel Committee petabytes of data – the CELLECTIS equivalent of THE FRENCH START-UP Cellectis is developing UCART19, a 100 million films promising cancer treatment based on genome editing that is current- The company (one of whose main ly in phase I clinical trials. The FOUNDED shareholders is pharma giant Bayer) FOUNDED company has five other treatment 2013 also has three anti-cancer drugs 2013 candidates that are less advanced HEADQUARTERS in phase I clinical trials, as well To explore this potential, in Novem- HEADQUARTERS (see Swissquote Magazine, March ZUG as less advanced treatments for ber 2020 software giant Microsoft SAN FRANCISCO (US) 2019). EMPLOYEES EMPLOYEES FOUNDED : 1999 TAKEHIKO SUZUKI / YOMIURI THE SHIMBUN AFP TAKEHIKO genetic diseases such as Duchenne and hard drive specialist Western 300 400 muscular dystrophy. Most analysts Digital announced the creation of a HEADQUARTERS : PARIS (FR) 2019 REVENUE 2020 REVENUE EMPLOYEES : 100 $289.590 M recommend buying shares, which “DNA Storage Alliance” with Illumi- $90.1 M 2019 REVENUE : $15.19 M have already risen by more than na and Twist Bioscience. Within CLLS CRSP TWST 130% since the start of 2020. this alliance, Illumina will supply its

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CALYXT FOUNDED 1991 NEW GMOS Using genome editing tools, this HEADQUARTERS SALT LAKE CITY (US) US company develops genetically-­ modified food products, such as a EMPLOYEES soybean oil that is low in bad fats. It 2,600 has been on the market since 2019 2020 REVENUE and claims to be a healthier choice $638.6 M (see Swissquote Magazine, March MYGN 2019). FOUNDED : 2010 HEADQUARTERS : MINNESOTA (US) EMPLOYEES : 50 MYRIAD 2019 REVENUE : $7.3 M THE SHAMELESS AMERICAN CLXT NATERA The story of Myriad Genetics is now cer genetic testing. Since the ruling, PRENATAL TESTING case law. In 1996, the US company many tests have been developed by Specialising in genetic testing, was the first to market a genetic competitors, including those outside Natera launched the non-invasive diagnostic test that measured the the medical industry. Companies prenatal test Panorama in 2013. The flagship product can detect By revealing in 2013 predisposition for breast and ovarian such as 23andMe offer this type of to have undergone a genetic diseases in an embryo by double mastectomy, cancer. To protect its invention, the DNA testing directly to consumers testing a blood sample from the actress Angelina company filed two patents on the without a medical prescription. mother, avoiding a much more Jolie publicised BRCA1 and BRCA2 genes, which invasive amniocentesis. Myriad Genetics' are closely associated with those This is because the market has sky- FOUNDED : 2004 genetic testing. cancers. This privatisation of DNA rocketed, thanks to Angelina Jolie. HEADQUARTERS : SAN CARLOS (US) EMPLOYEES : 1,000 became the subject of a global In 2013, when genetic testing was 2019 REVENUE : $302.3 M

LEON NEAL / GETTY IMAGES still largely unknown to the general NTRA public and even health professio- nals, the American actress wrote VERACYTE an article for the New York Times BAYER'S FRIEND announcing that she had undergone American company Veracyte Myriad Genetics a preventative double mastectomy is developing genome tests to offers more than at the age of 39 because she is a avoid unnecessary surgery in the carrier of the BRCA1 mutation. Her treatment of various cancers. In INVITAE 15 DNA tests for December 2020, German giant article, titled “My Medical Choice”, Bayer extended the scope of its TELEMEDICINE IN THE GENOME AGE diseases such caused many people to take an collaboration with Veracyte to as depression interest in their genetic risk factors. include the molecular diagnosis Direct-to-consumer genetic testing In response to this problem, American nerships with telemedicine providers The phenomenon was dubbed the of thyroid cancer. is becoming more widespread. This company Invitae, a specialist in PWNHealth and Genome Medical. “Angelina effect” and the portfolio FOUNDED : 2008 is demonstrated by the success of genetic screening tests, has devel- of available genetic testing has ex- HEADQUARTERS : SOUTH SAN FRANCISCO (US) unlisted company 23andMe, which of- oped a more sophisticated approach, Invitae’s innovative approach takes panded ever since. Myriad Genetics, EMPLOYEES : APPROX. 270 2019 REVENUE : $120.4 M fers members of the public the oppor- whereby customers can order genetic advantage of two booming sectors: which is only one of the hundreds of VCYT tunity to order a saliva test online for testing kits online for between $250 genetic testing and telemedicine. public debate, with a fundamen- companies selling genetic testing, $199 to detect their genetic predispo- and $350. Unlike companies such Most analysts recommend holding tal question: can human genes be offers more than 15 DNA tests for sition to a dozen or so diseases. But as 23andMe, the test is approved by shares, which soared by more than patented? Myriad Genetics lost the diseases such as depression, me- this type of service raises a few is- an "independent" expert who judges 150% in 2020. battle definitively in 2013 when the lanoma and colorectal cancer. Most sues (see also p. 52): “When patients whether the customer really needs US Supreme Court ruled that DNA analysts recommend holding shares, receive the results, they are not in a it. If the test is deemed pertinent, the FOUNDED could not be patented. The decision which have gone up and down for position to interpret them,” stresses kit is sent to the customer, who takes 2010 ended its monopoly on breast can- several years. Professor Marc Abramowicz, head of the saliva sample himself and sends HEADQUARTERS the genetic medicine department of it back to Invitae. The results are then SAN FRANCISCO (US) EMPLOYEES the Geneva University Hospitals group made available online. The company 800 (HUG) and director of the Centre for strongly recommends that its custom- 2020 REVENUE Genetic Medicine. “This can cause a ers have their results analysed by a $278 M

certain amount of distress, and even doctor – an additional service that NVTA anxiety if the results are bad.” Invitae provides through its part-

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EDITAS THE GENOME EDITOR BIONTECH With around 10 drug candidates in its pipeline, Editas Medicine, which uses the CRISPR-Cas9 genome ed- iting method, has a robust portfo- lio. That said, all its drugs are still in the early stages of development. FOUNDED : 2013 HEADQUARTERS : CAMBRIDGE (US) EMPLOYEES : 2,008 2019 REVENUE : $20.5 M BIONTECH EDIT

THE CANCER-TURNED- INTELLIA NOVARTIS'S PARTNER VACCINE SPECIALIST With partnerships with Novartis and Regeneron, Intellia Therapeu- tics is developing seven treatments During its IPO on the NASDAQ in who co-founded BioNTech with his using CRISPR-Cas9 technology, particularly for genetic diseases 2019, the German biotech group was wife Özlem Türeci, decided to pivot and certain types of cancers. struggling to attract investors. It entirely and develop a COVID-19 FOUNDED : 2014 planned to sell 13.2 million shares vaccine using mRNA technology. Af- HEADQUARTERS : CAMBRIDGE (US) in the IPO at a unit price of $18-$20, ter receiving €375 million from the EMPLOYEES : 250–300 but the company had to scale down German government and partnering 2019 REVENUE : $43.1 M its plans, releasing only 10 million with US giant Pfizer in March 2020, NTLA shares at $15. At the time, BioNTech the small biotech made the right de- specialised in individualised cancer cision: in December, BNT162b2 was SANGAMO treatments with a pipeline of about the first vaccine authorised in the THE PIONEER IN 20 compounds. It did not yet have United States, European Union and GENOME EDITING A front runner in genome editing, any products on the market and had Switzerland. “Seeing people benefit American company Sangamo Thera- never generated a profit. from our work is very touching,” said peutics has some 15 drugs under Türeci, in an interview with German development, its most advanced magazine Spiegel in early January. being SB-525 for haemophilia A, which is currently undergoing Due to the coronavirus, BioNTech phase III clinical trials. Due to the and its partner Pfizer, which plan FOUNDED : 1995 HEADQUARTERS : RICHMOND (US) coronavirus, to produce two billion doses in EMPLOYEES : 350 BioNTech and its 2021, are expected to share $15 to 2019 REVENUE : $102.4 M $20 billion in revenue in 2021. And SGMO partner Pfizer are after that? The German biotech will expected to share likely return to its original focus: “I think that we have a realistic oppor- $15 to $20 billion tunity to fundamentally change the way cancer is treated,” said Şahin in in revenue in 2021 At the very Spiegel. And now that mRNA tech- beginning of the nology has proven itself effective pandemic, the against the coronavirus, BioNTech German laboratory BioNTech redirected is no longer struggling to attract its research towards investors. In 2020, the company's a vaccine against FOUNDED But that was then. In January 2020, share price increased 160% and COVID-19. 2008 the company's future changed analysts are now split on whether HEADQUARTERS radically when CEO Uğur Şahin, to purchase or hold shares. MAINZ (DE) EMPLOYEES APPROX. 1,500

2019 REVENUE €108.6 M

BNTX

50 51 GENETICS SWISSQUOTE MARCH 2021 GENETICS SWISSQUOTE MARCH 2021 DNA MASS-MARKET TESTING GOES WILD

Genealogy, athletic performance, food intolerances... Recreational genetic testing kits sold online can now be used for quite eccentric purposes, even in Switzerland. But just because the kits are available doesn’t mean they are risk-free.

BY BERTRAND BEAUTÉ

hen Élise received the to the MIT Technology Review, groups 23andMe, Gene By Gene and results of her genealog- 26 million people around the world AncestryDNA, Israeli company MyHer- W ical testing, she was a purchased direct-to-consumer (DTC) itage and UK group Living DNA, all of bit surprised and a bit disappointed: DNA kits between 2013 and 2019. which are not currently public. “It found 25% Balkans origins, which This number is expected to reach I wasn’t expecting at all,” said the 100 million by late 2021, according POORLY PROTECTED CLIENT DATA Zurich student. “The rest was pretty to the review. According to Global In a cumulative report published disappointing. The results aren’t on 24 November 2020, the foun- very precise. It didn’t give me any dation TA-Swiss, which assesses real information.” Like many people, technological impacts, identified Élise decided to order a genetic test 14 companies that offer genetic online. Easy enough. Kits can be or- testing to the general public and dered online in just a few clicks, and “If you’re not paying ship to Switzerland. There is such some are even less than 100 Swiss a lot of money for the widespread availability that the francs. The test arrives a few weeks Swiss government actually revised later in the mail. Just scrape the in- test, that means the the Federal Act on Human Genetic side of your cheek with the large cot- company will abso- Testing (HGTA) in order to explicitly ton swab provided, place it in a tube lutely sell your data. expand it to include tests sold di- and send it back to the company, rectly to consumers (see also p. 55). often located in the United States. You are the product!” Hervé Chneiweiss, president of the ethics committee at Inserm The goal is to better protect data These direct-to-consumer tests provided by Swiss customers. “Peo- can reveal how to improve athletic ple think these tests are fun and performance, where your ancestors harmless,” said Hervé Chneiweiss, came from, or even if you are geneti- president of the ethics committee at cally susceptible to certain diseases Inserm (French National Institute of such as Alzheimer’s. Companies like Market Insights, the DTC test market, Health and Medical Research). “But DNA Romance even offer their clients which exceeded $1 billion in 2019, is that is entirely untrue. Data protec- the opportunity to find soul mates expected to reach $3.4 billion in 2028. tion stops at the European border. based on so-called scientifically Business is booming, and there are The goal of these companies, often unproven and ethically questionable many private companies taking ad- American, is purely commercial. If

GETTY IMAGES genetic complementarity. According vantage of it, such as the American you’re not paying a lot of money for

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the test, that means the company Consumers may believe that their gene­tic data from other customers will absolutely sell your data. You are entire genome is being sequenced, – a service that is much appreciat- the product!” In 2018 for example, but in reality, the test searches ed by people who don’t know their 23andMe sold all of their customers’ only for a few known mutations,” parents, for example, and wish to “PEOPLE SHOULD THINK genetic data, 5 million profiles, to UK said Chneiweiss. “From a scientific learn more about their identity. But pharmaceutical lab GlaxoSmithKline standpoint, the method is a proven proceed with caution: “Discovering for $300 million. And that wasn’t the one. But studies have shown that the that you have an unknown uncle in TWICE BEFORE DOING first time. According to the maga- quality of DTC tests vary from one the United States and finding out zine Wired, between 2015 and 2018, company to another. Moreover, the that the fami­ly history you’ve heard 23andMe shared data with at least interpretation of the results should about your whole life isn’t true could THESE TESTS” six other companies. be reviewed with some scepticism.” be traumatising,” said Chneiweiss. “And these results will affect the And private companies aren’t the entire family, even if others don’t David Raedler, a Lausanne lawyer specialising in only ones interested in genetic pro- want to know.” data protection and the private sphere, shares his files. In February 2019, Family Tree expertise on recreational genetic testing. DNA, one of the largest mass market In terms of health concerns, DNA genetic testing companies, admitted “The psychological tests have similar limitations: it is BY BERTRAND BEAUTÉ to working with the FBI. And in April difficult to reach a definitive conclu- 2018, the “Golden State Killer”, a repercussions of sion from a genetic test. serial killer suspected of 12 murders these tests are between 1974 and 1986, was arrest- problematic” “Know your genes. Own your health” ed because a member of his family Bernard Baertschi, ethics and claims the slogan of 23andMe, The revision to the Swiss Federal customer, except if the customer tests, where their genetic data will had taken a recreational DNA test philosophy researcher at Unige whose $199 Health and Ancestry Act on Human Genetic Testing freely and expressly consents to other be truly protected. We’re trying to that was then shared on GEDMatch, test claims to detect a predisposition (HGTA) is expected to enter into uses after being sufficiently informed. protect people from themselves, an open genomic database. to a dozen or so diseases. But it’s not force in 2021 or 2022, once the So companies will no longer be able to because when they send their genetic quite as simple as it seems. “We’re ordinances that explain its sell genetic data without consent data to the United States, it is subject “People don’t realise that when they seeing an increasing number of peo- application are adopted. Why was from their customers. This already only to American law. So they give their DNA to companies, they ple come to the hospital after taking it necessary to revise the law? existed in the 2007 HGTA, but it will be completely lose control of their data. also compromise their close family, a commercial test because they are Medical genetic testing without a explicitly extended to direct-to-consu- who did not consent,” said Alicia concerned with the results,” said medical prescription is illegal in mer tests. On that note, what are the risks Sanchez-Mazas, professor in the Genealogical tests promise to re- Professor Marc Abramowicz, director Switzerland, and will remain so. for Swiss consumers who send Anthropology unit of the Department veal your geographical origins. But of the Centre for Genetic Medicine However, recreational genetic tests DNA samples abroad? of Genetics and Evolution at the according to Sanchez-Mazas, “it is at HUG. “The problem is that even (for genealogy, fitness, food) were The goal of these companies is University of Geneva (Unige). not possible to determine where a though these tests are technically in a legal grey area, because they purely commercial. They don’t “People working in the genetics person’s ancestors lived based on reliable, they don’t mean anything weren’t explicitly covered by the hesitate to sell consumer data to field don’t take these kinds of tests their genetic profile.” Why not? While from a medical perspective.” Federal Act on Human Genetic other companies, which could be because they know how sensitive genetic variants are more frequent Testing (HGTA). The problem is that “When they send catastrophic for the individuals DNA data is.” in certain locations than in others, For Alzheimer’s, for example, there is with all the tests available online, their genetic data to involved. Here’s an example. In there are no variants that are spe- not a singular known gene respon- it became very easy for anyone to the United States, Switzerland, the Insurance Contract Hacking, of course, is another ma- cific to one region of the world or a sible for the disease. The variant order and take a test sold by foreign Act requires that insured consumers jor problem. In 2018, the company given population. “The Italian gene tested by 23andMe is simply found companies. So the federal law, which it is subject only are transparent with the insurance MyHeritage announced that 92 of its doesn’t exist,” said Sanchez-Mazas. more frequently among patients with was enacted in 2007, no longer to American law” company. In other words, if you take 96 million user accounts had been “The best we can do is estimate the the disease, but it does not mean satisfied current requirements. It a genetic test that detects you have hacked, casting doubt on its DNA probability that an individual comes that a person with the variant was revised in 2018 to explicitly a predisposition to a disease, you are data protection system. “I wasn’t from a given population, by com- will develop Alzheimer’s. “The include direct-to-consumer genetic required to alert your insurance worried when I sent in a saliva sam- paring their genetic profile against psychological­ repercussions of these tests. This new revision is expected company, even if the test was ple,” said Élise. “But I probably don’t an existing database.” Since DNA tests are problematic,” said Bernard to enter into force in 2021 or 2022. ordered online from a foreign know everything they were going to companies don’t all use the same Baertschi, an ethics and philosophy company. If you don’t tell your do with my DNA.” database, the results of each test researcher at Unige. What are you Concretely, what will change? The global leaders in the industry insurance company, and it finds are different. going to do with the information that With the exception of medical tests, are American companies. Does out when purchasing a set of data, QUESTIONABLE RESULTS you have a 13% chance of developing recreational DNA tests will become this apply to them? your insurance contract can be A fundamental question: are One thing to note is that sever- Parkinson’s disease? It just causes legal in Switzerland, but they must No. This does not affect foreign terminated. So people really need mass-market DNA kits reliable? “All al genealogy companies, such as anxiety for no reason, especially follow a strict framework. The new companies. But the idea behind this to think before taking these tests. of these tests work the same way. MyHeritage, also offer their custom- since there is no cure for that dis- HGTA states that samples and genetic new law is that Swiss companies They create problems that consu- They analyse small differences in ers a chance to “discover new family ease. These tests are quite dangerous data cannot be used for any purposes can now enter the market and offer mers aren’t giving enough considera- our genome, known as variants. ties” by comparing their DNA with for hypochondriacs.” other than the test ordered by the consumers an alternative to foreign tion to.

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In October 2017, Modern Meadow pletely changed. It took 15 years for Dan Widmaier in Fortune magazine, currently insert small fragments of exhibited a Craig Venter and his team to write citing the environmentally-friendly synthetic DNA into the genome of t-shirt made of a DNA with one million letters (pair advantages of the textile compared natural organisms (yeast or bacteria) biofabricated material from its Zoa of nucleotides), but the Cambridge to leather and petroleum-based to manipulate them. But if companies range at MoMA. researchers created four million polyester. The company, which is also were able to produce 100% artificial in just two years. What’s more, working on a vegan leather, signed organisms, it would be possible to Venter’s organism was simply a copy, a partnership in late 2020 with the optimise our future and the future whereas the bacteria created by the brands Adidas, Lululemon, Kering and of the planet, since these biologi- Cambridge researchers was an “im- Stella McCartney, which plan to use cal systems would only be used to proved” version of natural E. Coli, be- the vegan leather in their products produce materials that were useful cause the genome was compressed from 2021. But Bolt Threads has for humans. The potential of these to eliminate redundancies. competition. In September 2018, “useful” organisms seems limit- New York start-up Modern Meadow less: modified jellyfish that find and But what is the purpose of this work? launched Zoa, its first collection of destroy pollution-causing material, Beyond the purely scientific aspect, vegan leather products produced yeasts that produce “green” bioplas- this type of research is not without using synthetic DNA. tics and fuels, viruses programmed its economic motives. In medicine, to kill cancers, new medicines, the use of synthetic DNA to repair meat and artificial leather that or replace a defective gene finally save animals… seems within reach. And in indus- New York start-up try, creating cells with a bespoke Modern Meadow The University of Cambridge’s 2019 genome would make it possible to launched Zoa, its first work to produce an entirely artificial create made-to-order molecules for collection of vegan bacterium seems to head in this the chemical and pharmaceutical leather products direction. But this type of organism industries, as well as biofuels and produced using created by humans does cause some

DR other materials. Is this the market concern. Risks include creating a of the future? Actually, it already synthetic DNA pathogenic virus or the “improve- exists. The US start-up Memphis ment” of human beings favoured by Meats uses synthetic DNA to produce transhumanists. Researchers caused meat. In a more advanced-use case, But so far, synthetic biology has not a scandal in 2016, when the “Human Ginkgo Bioworks – which boasts been competitive enough against Genome Project-Write” was unveiled THE ASTOUNDING that it can “read and write cell fast fashion brands such as Zara, in the journal Science. The project programmes just like we programme Uniqlo and H&M. aimed to build a human genome en- computers” – produces natural fla- tirely from synthetic DNA. It received vourings using synthetic DNA made To improve returns, the ideal scenario a wave of criticism, particularly POTENTIAL OF by Twist Bioscience (see also p. 47). would be to produce entirely artificial because of the potential to create organisms. All of these companies children without biological parents. And they are not the only companies SYNTHETIC BIOLOGY to believe in the potential of synthetic DNA: Bolt Threads, for example, uses Artificial food, new materials, synthetic viruses... it to produce silk. How? The company, SYNTHETIC DNA IS VERY EXPENSIVE Lab-made DNA is opening the door to numerous based near San Francisco, creates small fragments of synthetic DNA in applications. But the potential of this technology US company and industry leader according to a report by the French the lab that imitates the genes of spi- can be a cause for concern. Twist Bioscience creates DNA Academy of Technologies published der silk proteins. These fragments of fragments for $0.07 per letter (pair in October 2020. But prices are fall- BY STANISLAS CAVALIER DNA are then mixed with yeasts and of nucleotides). At that price, re- ing fast, by a factor of 1,000 every placed in tanks with water and sugar, producing the 3.2 billion base pairs five years, driven downwards by a similar to breweries, and the yeast of the human genome would cost handful of innovative start-ups. reating living things. With Escherichia coli (E.coli) bacteria produces spider silk. In 2017, Bolt nearly $225 million. But currently, In addition to Twist Bioscience, the primary market for synthetic the Paris biotech DNA Script is the progress made in DNA in the lab, complete with an entirely Threads made headlines with their DNA is focused on very small frag- highly regarded in this market, C synthesis, the idea is no synthetic genome. This was not product, presenting a yellow-gold ments used in PCR tests to diagnose with its DNA printing project. In longer a total fantasy. In 2019, a new achievement. In 2010, dress to the New York Museum of COVID-19. The price of synthetic January 2021, it received $23 mil- researchers from the University of researchers from the John Craig Modern Art (MoMA). DNA remains a barrier for many lion from Intelligence Advanced Cambridge announced in the well- Venter Institute had created the first other applications. For use to Research Projects Activity, a re- known journal Nature that they artificial genome. But in the space “We’re entering a new era for store IT data (see also p. 47), the search agency affiliated with the had created perfectly functional of nine years, the scale had com- materials,” says Bolt Threads CEO cost is 100 million times too high, US intelligence services.

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ollowing many long years trend that followed Prime Minister erring through purgatory, Shinzo Abe’s return to power at the an air of revival is spread- end of 2012. “Although the Japa- ing through global portfo- nese stock market looked cheap, it The flamboyant Flios. After the element of surprise was unattractive, dominated by un- had subsided last August, it was as popular stocks, such as big banks, if Warren Buffett’s announcement or stocks in the automotive indus­ comeback that he had bought a 5% stake in try, which had fallen behind in the several Japanese trading com- transition towards electric vehicles panies dispelled the persistent by focusing on hybrids,” says scepticism felt by international Cédric Le Berre. of Japanese investors towards Tokyo-listed shares. The $6 billion investment in But the wind is starting to change the famous “sogo shoshas”, export- direction. Despite the COVID-19 equities ing conglomerates that had fallen cataclysm, the leading index in out of favour due to the diversity Tokyo has stood out for its good of their holdings, is the largest po- performance. In 2020, the Nikkei sition held by Berkshire Hathaway, jumped 16% to return to its high- The Tokyo Stock Exchange is once again stirring the American financier’s investment est levels since the late 1980s, a the interest of foreign investors. It is the market company, outside the United States. performance in line with that of the in one of the best positions to benefit from a likely In the press release about the deal, S&P 500 in the United States, but global recovery. And in the longer term, it will the maverick of stock market shake- significantly better than that of the benefit from improved corporate governance. ups said he was “delighted” to be SMI (up 0.95%) or the Euro Stoxx BY ANGÉLIQUE MOUNIER-KUHN involved in the future of Japan, em- 50 (down 4%). Although the past phasising the long-term horizon and year again ended with net foreign passive nature of his investment. sales of Japanese securities, the upturn in purchases in the last Discredited by its chronic under- quarter suggests a trend reversal A pedestrian is performance, a consequence of de­ that should be confirmed in 2021, reflected on a stock cades of stagnant GDP and compa- according to the overwhelmingly indicator displaying share prices of nies’ inefficient use of capital, the positive consensus. the Tokyo Stock Japanese stock market has long Exchange in Tokyo, been left out of global allocation In a note published at the end of on the first trading models. Even so, the world’s third December, Jean-Baptiste Berthon, day of the year. largest economy is the first compo- senior cross-asset strategist at nent of the MSCI ACWI (All Country Lyxor Asset Management, believes World Index) ex USA Index with a in this new-found confidence weighting of 16%. “It’s true that prevailing. He believes that “the Japan is a sort of forgotten market. improved global outlook, easing of Many emerging stock exchanges are trade tensions, resurge in consumer attracting more attention,” says demand, and a myriad of govern- Hiromi Ishinara, head of the Equity ment measures to support markets” Investment Department at Amundi are cyclical factors that all point to Japan. Cédric Le Berre, investment Japanese equities in 2020. specialist and fund selector at UBP, agrees, “The Japanese market is The government of Yoshihide Suga, under-owned and misunderstood. the Prime Minister who came to Especially in recent years, it has power in September 2020, replac- been deserted by foreign inves- ing Shinzo Abe after serving as tors who have turned to Chinese his right-hand man, even shows equities.” reserved optimism. In December, it raised its growth forecast from Between 2015 and 2019, foreign 3.6% to 4% for the fiscal year that traders have shed the equivalent will begin in April 2021, after a of $134 billion in Tokyo-listed secu- 5.2% contraction last year due to rities, annihilating the massive buying COVID-19. This decision is based, BEHROUZ MEHRI / AFP

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Japan’s Prime for one, on the expected impact These mountains of cash have long Minister Yoshihide in global digital competitiveness,” of the last instalment of econom- been singled out as the result of Suga speaks on the says David Souccar of Vontobel. ic support measures approved in the excessive prudence of Japa- state of emergency Meanwhile, Hiromi Ishinara recom- on 8 January, amid December, which brought the total nese companies and their inability the new strain of mends avoiding companies that are fiscal response to the pandemic to allocate their capital effectively. COVID-19. The likely to be the hardest hit by digital to nearly JPY 310 trillion (about But in last year’s turbulent econo- government declared disruption, such as banks. $3 trillion). It is one of the largest mic climate, they turned out to be a second state of emergency targeting stimulus packages in the world. a boon. “Economic conditions are Tokyo, Kanagawa, favourable to consolidations,” the Chiba and Saitama Prefecture on “The road to global recovery is expert says. “Being flush with cash, “Japanese companies likely to remain a bumpy one. But companies are in a good position 7 January. between the vaccine, government to finance potential acquisitions are learning how to stimulus packages, and liquidity should opportunities arise.” treat their shareholders injected by central banks, stocks better” Cédric Le Berre, investment specialist are ticking all the boxes. Due to Those deep pockets mean that they and fund selector at UBP its cyclical nature, the Japanese can also afford to be more gener- market (ed. note: the industrial and ous than their Western competi- consumer discretionary sectors tors. Launched in 2015, governance weigh twice as much as in US reform is a fundamental trend that All other things being equal, 2021 indices) is the market in one of the is beginning to pay off and justifies could well be Japan’s big year on best positions to seize on a global the renewed interest in the Tokyo equity markets. Unless COVID-19 recovery,” says Hiromi Ishinara. Stock Exchange. “Government and insists on stirring up trouble. The corporations have become truly first onslaughts of the pandemic aware that improving shareholder in the archipelago were kept under relations is a guaranteed way of better control than in Europe or the stimulating the economy,” says United States. But the latest incur- David Souccar. Cédric Le Berre sion of the coronavirus that began “In an IMD study, Japan agrees with this analysis, “Japa- in the autumn seems to have taken ranks only 27th in global nese companies are learning how the authorities by surprise. Now, digital competitiveness” to treat their shareholders better. doubts have arisen about whether David Souccar, portfolio manager at This is reflected in better dividends the Olympic Games can take place

Vontobel Quality Growth Boutique and more share buybacks.” MASANORI GENKO / AFP after being postponed to July 2021, and Prime Minister Suga’s approval With each revision, the next of ratings in the polls have suffered. which will be presented in the Hiromi Ishinara points out. “For the to environmental, social and gov- are technology companies that will Mr Suga is running out of time to spring, the new code introduces moment, the reforms have led to ernance (ESG) issues. “At Japanese benefit from widespread adoption prove his merit: new general elec- stricter rules that are gradually a broad dispersion between those companies, the movement has not of teleworking and development of tions are due to be called between On top of the favourable context of bringing corporate Japan in line with diligently working to improve, which yet taken hold as it has in our lati- the digital economy. “Investment in now and this autumn, and uncertain- economic recovery, Japanese stock international standards on share- are more likely to be large capitali- tudes. They have been concerned some SMEs in all of these sectors ty about their outcome could be felt valuations are considered attrac- holder communication, unwinding of sations, versus small- and medi- about the environment for a long has accelerated considerably in on the stock market. No one is sure tive. “Even after the recent rally, cross shareholdings, compensation um-sized companies, which tend to time, and their governance practic- recent years, and they have become how long the Bank of Japan (BOJ) Tokyo is still trading at a discount committees and independence of lag behind and whose new standards es have been improving since 2015. much more efficient. This factor will continue to act as a bulwark of 10% to 15% compared to the S&P board members. On this specific are supposed to encourage them to But social issues remain virtually remains underestimated by foreign with its massive ETF purchases, 500 when price/earnings multi- point, progress is clear. Ninety-five catch up.” Listed companies are not ignored,” says Cédric Le Berre of observers,” says Cédric Le Berre. one of the vectors of its highly ples are analysed from a historical per cent of companies listed in the required to follow all the measures, UBP. Hence the need, he feels, to For example, one of the Suga accommodative monetary policy. perspective,” says David Souccar, “first section” of the Tokyo Stock but they must justify the slightest take a selective approach to the government’s priorities in its latest This strategy is a guarantee of portfolio manager at Vontobel Exchange (segment covering the deviation. Meanwhile, the Tokyo Japanese market and set apart the stimulus package was digitalisa- stability for some but is also con- Quality Growth Boutique. largest firms in terms of capitalisa- Stock Exchange has itself begun a most deserving companies from the tion, along with carbon emissions troversial as it can distort prices tion) now have at least two inde- transformation intended to clarify less virtuous ones. reduction, an area where the coun- of listed securities. According to Another supporting argument is pendent members on their boards and tighten listing criteria, to bring try has fallen behind considerably. NLI Research, the BOJ actually that “Japanese companies have of directors, compared with just them in line with practices of foreign In terms of sectors, high-tech “Japanese firms have a long way became the biggest owner of Japa- very large reserves. In the Topix, over 20% six years ago. stock exchange operators. industries (robotics, miniaturisa- to go to catch up to companies in nese stocks last year, holding the a broad-based index of the Tokyo tion) and domestic consumption, other developed economies. It is equivalent of 7% of total market Stock Exchange, 55% of the non-­ Overall, however, the gap between Another phenomenon at work is the focusing on the new consumer striking that fax is still used more capitalisation and edging out ahead financial companies have a positive Japanese firms and international growing consideration given by in- habits of millennials, are expected than email to share documents. In of the Government Pension Invest- cash position,” Hiromi Ishinara says. standards has not yet been bridged, stitutional and individual investors to offer the best opportunities. As an IMD study, Japan ranks only 27th ment Fund (GPIF).

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FARMY SWISS START-UPS FRESH PRODUCTS AND SOFTWARE ON THE MENU Flying high on significantly increased demand during partial lockdowns, this Zurich-based start-up specia- IN THIS EDITION lising in local delivery of fresh produce nearly tripled its revenue in 2020, from 9.5 million Swiss francs to We are now sharing our 26 million francs. Beyond this staggering growth, the selection of promising company isn’t just focused on fruit and veg delivery: it has also become an IT services provider for the retail Swiss start-ups in each ZURICH edition. sales industry.

BY GRÉGOIRE NICOLET Farmy has developed its own IT infrastructure over the past seven years. The software successfully handled a 300% increase in orders during the first wave of the pandemic, which led the company to offer it to other Number of businesses. The toolbox includes an online shop, a employees management system for orders, stock and deliveries, 220 and an itinerary planning tool. Bio Suisse became its ECUBLENS first client early this year and Farmy has claimed that Founded demand for the software is already very high. 2014

INSOLIGHT SOLAR FOR AGRICULTURE CUTISS A GLIMMER OF HOPE FOR BURN VICTIMS Solar energy has never been more affordable and Insolight is well-positioned to benefit from the drastic Created out of Wyss Zurich, a project accelerator from decrease in price. Its new solar panels offer a 29% the University of Zurich and EPFZ, Cutiss was named efficiency rate, which is more than 10% higher than the best Swiss start-up of 2020 by Venturelab. The traditional industrial panels. The Vaud-based company, a company, co-founded by two women, Daniela Marina start-up from the EPFL Innovation Park, is first targeting (CEO) and Fabienne Hartmann-Fritsch (CCO), aims the agrivoltaic market where its translucent panels can to revolutionise skin grafts by growing human skin in be installed above fruit crops and even on greenhouses.v laboratories. By taking a small skin sample from burn This is a new, very promising market valued at 700 mil- victims, Cutiss can artificially reproduce the skin to lion Swiss francs. use for larger grafts.

Production of the panels is currently handled by But the company’s biggest challenge is creating a ma- Aargau-based company Högg, while Insolight focuses chine that will standardise production of the synthetic on R&D and design. The start-up already raised skin, and Cutiss has not revealed information about the CHF 5 million in June 2020, in addition to the CHF 10 Number of progress of its prototype. Along with 12 other Swiss million received from the European Union as part of employees companies, the Zurich start-up will participate in the Number of not disclosed the Hiperion project, which aims to increase produc- employees 2021 edition of Euronext’s TechShare programme, a tion of solar panels in Europe. Insolight has already 16 Founded European programme that prepares private companies launched an initial series of 1,000 panels, which will be 2017 for an IPO (see Swissquote Magazine, May 2020). installed for key clients. “We’re aiming for mass produc- Founded tion by 2023,” says CEO and founder Laurent Coulot. 2015

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or the launch of its shop This was not always the case. For spend several thousand francs for a on the Chinese online a long time, luxury brands were timepiece or jewellery they had nev- retailer Tmall last August, hesitant to make the leap to Chinese er seen with their own eyes. “Buying Piaget pulled out all the e-commerce sites. “When I joined a luxury watch is an emotional expe- Fstops. The Swiss watchmaker shot Alibaba in 2015, the majority of rience, a special moment, and many an interactive short film with star luxury brands were not on our plat- customers prefer to have that in a actor Liu Haoran, with a different forms,” recalled Sébastien Badault, physical store,” says Daniel Zipser, ending for men and women. It also managing director of Alibaba France. who covers the consumer sector for organised a livestream with Austin The companies told him that they McKinsey from Shenzhen. Li, an internet celebrity known for didn’t want their products being sold his hours-long videos during which on the same site as saucepans and he tries on – and sells – hundreds of nappies, and didn’t want to lower lipsticks. The brand took advantage their prices. The Chinese made of the occasion to sell limited edi- 70% of their luxury tions of its latest collection. “This Watch brands were also afraid of campaign enabled us to attract jeopardising the relationships they purchases at home 4.7 million internet users,” says had spent years building with their last year, compared Mathieu Delmas, managing director dealers. “By circumventing them to with 30% in 2019. of Piaget China. sell directly to consumers online, And most of that brands feared they would offend The Geneva-based company is dealers,” says Fabrice Paget, found- shopping was online one of the many Swiss watch and er of the Tokyo-based marketing jewellery brands that have recently company The Luxury Brand Agency. joined Chinese e-commerce plat- “But brands still need these stores With this feedback in mind, Tmall forms. In 2020, IWC Schaffhausen, for physical sales.” decided to create a dedicated sec- Chinese e-commerce: Jaeger-LeCoultre, Vacheron tion for premium brands, the Luxury Constantin and Montblanc all On top of that was the concern that Pavilion, in 2017. “Brands can open Swiss watches opened stores on Tmall. customers would not be willing to their own online shop, which allows are moving in

JD.com’s “luxury” platform offers personalised home After many years of shunning them, Swiss delivery, complete with watchmakers and jewellers are flocking a valet in white gloves. towards Chinese online sales platforms. Even more so since the COVID-19 crisis. BY JULIE ZAUGG, IN HONG KONG JD.COM

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But these platforms are more than TAKING RISKS site within 24 hours,” he says. By

CARTIER just a sales channel. “They tell the Joining these e-commerce sites going through a brand’s dedicat- story of the company and its universe comes with its share of risk for ed shop on the Luxury Pavilion or through all the creative content they Swiss manufacturers. “They don’t Toplife, customers are guaranteed host, such as livestreams, short own their customer data, which to buy an original product. videos and augmented reality,” says remains the property of the Chinese Mathieu Delmas. Some brands have platforms,” says Daniel Zipser of But counterfeits are still out there, Cartier was the first taken original marketing strategies. McKinsey. Forced to offer discounts especially on the peer-to-peer plat- Richemont brand to In May, IWC Schaffhausen featured a during sales events such as Singles form Taobao or on WeChat, where open its virtual store 3D model of its Singapore store online. Day, they also lose control over their transactions are more confiden- on Tmall. This Chinese Tmall customers can walk around and pricing strategy and risk compromis- tial. Sometimes the algorithms online platform dedicated to luxury products chat with virtual assistants. ing their brand image. developed by these platforms has become a must for generate ads for products sold by major retailers. Roger Dubuis and Italian tyre manu- Another drawback is that myriad Taobao alongside Tmall ads, parti- facturer Pirelli joined forces to counterfeit products still circulate cularly on the Alipay payment launch a sales campaign on WeChat, on Chinese e-commerce platforms. app. Some brands have taken the during which 88 limited edition time- “In the past five years, we have set initiative to reassure their custom- pieces were available for 8,888 min- up a team that works with brands to ers. Breitling recently introduced a utes (8 is a lucky number in China). identify counterfeits, with algo- blockchain-based digital passport And Vacheron Constantin organised rithms that use artificial intelli- to verify the authenticity of its private videoconference sessions gence to detect them automatical- products. Consumers just scan it with a brand representative for cus- ly,” says Sébastien Badault from to access a certificate that proves tomers interested in buying watches Alibaba. “When a suspicious product the authenticity of the watch and worth over 100,000 Swiss francs. is spotted, it is removed from the identity of its owner.

them to preserve their brand identity growth in online sales reported by Constantin sold 100 pieces from its while also maintaining control over luxury brands in 2020 alone would Malte collection, each worth 166,000 their pricing strategy.” says Sébas- have taken five years under normal yuan (22,780 Swiss francs). tien Badault. Soon after, JD.com circumstances.” launched its own luxury goods plat- Chinese e-commerce platforms also form named Toplife, which offers The Chinese, who would normally enable watch and jewellery houses services such as delivery by a valet clear out the luxury shops of Ginza, to reach more customers. “China is a in livery and white gloves. Interlaken and the Champs-Elysées, huge market, and they can’t cover all CHINA NEWS SERVICE / GETTY IMAGES made 70% of their luxury purchases of it with a network of shops,” says Over the past four years, Cartier, at home last year, compared with Pablo Mauron, managing director Breitling, Audemars Piguet, Carl 30% in 2019. And most of that shop- China at the Swiss consulting firm F. Bucherer, Chopard, Zenith, Tag ping was online. As a sign of this re- Digital Luxury Group. Most luxury Heuer and Omega have all joined versal, Swiss watch exports to China brands have locations in large cities Jiang Fan, president one of these two websites. In 2019, grew 17% between January and such as Shanghai or Beijing. of Taobao and Tmall, two internet platforms the Richemont group partnered with November 2020, but declined 23.5% owned by Alibaba, celebrates Alibaba to feature its multi-brand worldwide, according to the Federa- record sales at an event in platform Net-à-Porter, followed by tion of the Swiss Watch Industry. Hangzhou on 12 January. another agreement at the end Vacheron Constantin of 2020 to team up and invest For watch and jewellery brands, a organised private $1.1 billion in Farfetch to develop presence on Chinese e-commerce videoconference the platform in China. sites has many advantages. “They sessions provide a way for us to reach our With the COVID-19 crisis, the move future customers, people who are online has accelerated. “With stores 30 years old or younger and who That pushes up online sales. On closing, consumers have gone on- are already used to making all their Singles’ Day, China’s major shopping line,” says Luca Solca, analyst at the purchases online,” Mathieu Delmas festival on November 11, Cartier research firm Sanford C. Bernstein, explains. Unlike most, this category sold more than 100 million yuan which has specialised expertise of the population is quite willing to (13.7 million francs) worth of prod- in the luxury goods industry. “The spend big online. In August, Vacheron ucts on Tmall alone.

66 67 SWISSQUOTE SWISSQUOTE MARCH 2021 SWISSQUOTE SWISSQUOTE MARCH 2021 Advertising

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71 RUBRIQUEAUTO SWISSQUOTESWISSQUOTE MARCH MARS 20162021

XXX Themes Trading

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AUTO The free electron The perfect embodiment of retrofitting, the electric version ELECTRIFYING of the Fiat 500 is ready for the shift to green vehicles. BY RAPHAËL LEUBA

FIAT 500E OPPORTUNITIES

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72 73 SWISSQUOTE MARCH 2021 TRAVEL SWISSQUOTE MARCH 2021

TRAVEL A springtime breeze in Ticino A weekend excursion of exotic walks and relaxing havens in the region of Locarno.

BY SALOMÉ KINER

SWITZERLAND

ith a picturesque While the very photogenic Verzasca palette of land- Valley recently made the rounds on TICINO scapes that trans- social media and attracted many forms around every tourists, Maggia is the slightly more LOCARNO Wturn and valley, Ticino is a region full hidden gem. Seven hundred kilo- of surprises. Walkers will love adven- metres of paths, ancestral stone, turing among the many scents and climbing, bike trails and rafting: stones found along the trails. History eclectic and wild, bathed in the buffs will be awed by the architectural essence of chestnut trees, with heritage that accompanies them from staggering views of the surround- The “Ponte dei one museum to the next. And gourmets ing mountains, this part of Ticino salti”, overlooking will enjoy the blended intricacies of the definitely lives up to its fairy-tale the Verzasca river, local cuisine, seated in a cosy grotto. reputation. is a tourist hotspot

ISTOCK in the region.

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ISTOCK religious buildings. enjoy luxuriousviewsdottedwith a meditativerestandhikerscan of theMiddleAges,benchesprovide Pioda chapel,aremarkablevestige the forest.NearSantaMariadella tops ofthevillageMaggiathrough ascends, hikerscanviewtheroof of thehike.Furtheralongastrail marvellously smallvotivemonument ic fountainsleadstothefirstand path borderedbyvinesandhistor At thestartofhamlet,astone of walking). ly 9kmforanaverage of4hours of theregionwithaneasyhike(near so hikerscandiscoverthewonders and arrivesinthevillageofMaggia, A circular, fully-markedroutedeparts VIA THE VALLE DEL SALTO FROM MAGGIA TOMAGGIA

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- mountain formanyyears. – wholivedinthefoothillsofthis butchers, shepherdsandgoatherds residents oftheValley –farmers, minder ofwhatdailylifewaslikefor perched alongthewayareare The manyrusticithatcanbeseen painter GiovanniAntonioVanoni. chapel; thisoneisdecoratedbyTicino the detourtoBraiaaforanothervotive in goodweather. It’sdefinitelyworth trails thatcanbeusedinallseasons stone –hascreatedmorethan20 of theValley anditsrawmaterial, highlight thearchitecturalheritage initiative –whichaimstoprotectand Vallemaggia Pietraviva project:this stone slabs.Itispartofthevast ascent, withstairsandembedded the startofarelativelyeasyyetlong Crossing theRialedelSaltoriveris TRAVEL The picturesque picturesque The perched inthe perched Maggia valley.Maggia Brontallo, village of -

30 minutes. Locarno toMaggiathattakeslessthan of Locarno.Thereisabusroutefrom approximately a20-minutedrivenorth *The villageofMaggiaislocated for twopeopleinthelowseason. Starting at250Swissfrancspernight insummermonths. natural pool and swimmersenjoythefall’s oftheSaltowaterfall, sounds tothecalming listening asleep canfall Guests with light. andfilledare minimalistic rooms The Swiss architect. awell-known Snozzi, Luigi by cubic additiondesigned withanultra-modern paired ago, centuries to overthree back thatdates Ticino house ina hotel boutique A superb Martinelli Casa In Maggia* WHERE TOSTAY for twopeopleinthelowseason. Starting at120Swissfrancspernight with aviewofthelake. theday relaxing canspend you thermalbaths, where Locarno walk totheTermali Salini&Spa it’shotel, aquick20-minute alcoves.and shaded Fromthe arrangements, staircases stone Borgo,like Casa withits floral quite rooms offer B&B-style none ofthemcansay they but services, offer spa Riviera onthe Ticino hotels Several Borgo Casa In Locarno two peoplewithaviewofthelake. Around 230Swissfrancspernightfor 2008. in built in1927andrenovated gem,which wasarchitectural viewofthisBauhaus thebest you ontheterracegives breakfast apeaceful Maggiore: of Lake thetranquilwatersoverlooks name, ofthesame whichhotel thenightat spend must visitMonte If you Verità, you Monte Verità Hotel In Ascona SWISSQUOTE MARCH2021 SWISSQUOTE

From there,the returntoMaggia saintly images found alongtheway). rified fromtheirwalk(and the that envelopshikerswhoare now pu chapel emitsapowerfulessence nut treethattowersoverthe village of theoppositevalley.Theold chest stunning viewoftheabruptslopes Shortly after, Cassinellaoffersa activities. that humansbuilttofacilitatetheir is proofofthecleverconstructions small valleyofRingio,whichalso trail, hikerswillreachtheembedded the river. Followingthe(still!)marked metres), thepathdescendstowards Once atthetopofMountCanaa(914 hidden gem is theslightlymore many tourists, Maggia Valley hasattracted Verzascaphotogenic thevery While Maggia. of thevillage of houses stone The -

- the hike. follows thesamepathasstartof much sothatintheearly20 known foritsmagicalpowers...So to theVallemaggia, thishilliswell- outskirts ofAscona-Locarno.Similar without atriptoMonteVerità, onthe No visittotheregioniscomplete OF MONTE VERITÀMONTE OF MAGNETICTHE PULL the world to train at this school. the world totrainatthisschool. Today, all over comefrom students mime Dimitriandhiswife Gunda. 1970s bythe clownandAscona inthe at Teatro Dimitri,founded theevening tospend opportunity visitorsthe alsogives restaurant atriptothe Locarno, 6 kmfrom in Verscio,in theregion.Located risotto thebest Federale serves Croce say thatOsteria locals casualrestaurant, nondescript likea itmayWhile look Federale Croce Osteria WHERE TOEAT TRAVEL

th centu - to experimentwithlivinginharmo intellectuals cametoMonteVerità ry, ahandfulofidealisticartistsand from Ascona. easy, picturesque20-minutewalk dedicated tothatexperiment.Itisan that group.CasaAnattaisamuseum chist MikhailBakuninwerepartof Isadora DuncanandRussiananar Hermann Hesse,Americandancer ny withnature.TheGermanwriter their Italian roots. their Italian laughterisasuresignofwhose amongTicinoresidents seated whilecan prolongtheiraperitif Maria Assunta churchandguests theSanta beams, theterracefaces witharchways filled andexposed inaformercloister located lovely: is dishes. setting Mediterranean The plattersand for itsseafood Cittadella, known Ristorante often visit gourmets In Locarno, CittadellaRistorante SWISSQUOTE MARCH2021 SWISSQUOTE - -

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78 79 TRIED AND TESTED SWISSQUOTE MARCH 2021 Advertising

TRIED AND TESTED REPAIRING A SMARTPHONE AT HOME BY GÉRARD DUCLOS

Our columnist rolled up his sleeves and tried to repair his iPhone on his own. Here’s his account of the disastrous attempt.

veryone with a smartphone Armed with all the necessary parts anything other than the tool provid- knows from experience as well as a video tutorial hosted on ed in the kit for that specific task. that high-tech devices are the kit manufacturer’s website (in Apple devices, in particular, have notoriously fragile and my case, the German brand Fixxoo), screw threads, and from experience,

E ISTOCK require regular screen and bat- I confidently opened my device. using the wrong wrench could ren- tery replacements. Fortunately, der the screws completely unusable. there are specialised repair shops everywhere, in which artisans with Fortunately for the purposes of this magic fingers repair smartphones Armed with all the test, we also planned to replace the in a matter of minutes with im- necessary parts screen and battery of an iPhone 6. pressive ease, all for a price of This time, the operation went a little around a hundred Swiss francs. as well as a video more smoothly: the device opened tutorial, I confidently without any damage and I was able “I could probably do that myself,” opened my device to successfully change the battery. you might think, after witnessing a quick repair. Save a few precious But things took a turn for the 12 CRYPTOS francs and learn a useful new worse again when I tried to replace skill... sounds ideal. A few Google Curiously, I encountered more re- the screen. I needed to carefully searches later, I decided I was up sistance than I expected. I pushed execute numerous tricky steps, for the challenge. In just a few a bit harder and the screen popped including gently manoeuvring the WITH A SWISS BANK clicks, you can order a complete off. I must have tried a bit too hard, home button and many very thin repair kit online containing re- in fact. When the screen detached, wires. Inevitably, my impatience placement parts, a screwdriver and the extremely delicate wires that and proverbial clumsiness caused Make the most of market opportunities with the only special tools, and have it delivered connect the screen to the device the entire operation to fail. to you. A kit to replace the screen tore off, making the screen, which regulated Swiss bank offering trading and custodial of an iPhone 6 or 7 costs around was new, completely unusable. As a result, I now have an iPhone services for 12 cryptos. 40 Swiss francs, and a battery 7 that will probably never turn replacement costs double that. First lesson learned: watch the en- on again and an iPhone 6 with a tire tutorial from beginning to end... brand-new screen and battery, A few days later, I received my It includes a thorough demonstration but no home button. Conclusion: if order and I started disassembling of each step. Another tip: definitely you’re all fingers and thumbs, best my iPhone 7 to replace the battery. do not try to turn the screws with to leave it to the professionals. swissquote.com/crypto

80 SWISSQUOTE N°1 MARCH 2021 THE BOOMING DNA BUSINESS WWW.SWISSQUOTE.COM