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Emerald Advisers and F/m Investments Announce the Launch of the F/m Emerald Life Sciences Innovation ETF (LFSC)

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Emerald Advisers and F/m Investments have launched the F/m Emerald Life Sciences Innovation ETF (LFSC) on the Nasdaq Stock Market. This actively managed ETF focuses on innovative small and mid-cap companies in biotechnology, pharmaceuticals, and medical devices. The fund leverages Emerald's proprietary 10-Step Research Process to identify high-potential firms in the life sciences sector. The launch comes as emerging biopharma companies account for two-thirds of clinical trial starts and 56% of new active substances approvals in 2023. With U.S. healthcare spending reaching $4.5 trillion in 2022 (17.3% of GDP), projections indicate an increase to 19.7% of GDP by 2032.

Emerald Advisers e F/m Investments hanno lanciato l'F/m Emerald Life Sciences Innovation ETF (LFSC) sul mercato azionario Nasdaq. Questo ETF gestito attivamente si concentra su piccole e medie imprese innovative nei settori della biotecnologia, farmaceutica e dispositivi medici. Il fondo sfrutta il processo di ricerca proprietario di Emerald, il 10-Step Research Process, per identificare aziende ad alto potenziale nel settore delle scienze della vita. Il lancio avviene in un contesto in cui le aziende biopharma emergenti rappresentano due terzi degli avvii di studi clinici e il 56% delle approvazioni di nuove sostanze attive nel 2023. Con la spesa sanitaria negli Stati Uniti che ha raggiunto i 4,5 trilioni di dollari nel 2022 (17,3% del PIL), le proiezioni indicano un aumento al 19,7% del PIL entro il 2032.

Emerald Advisers y F/m Investments han lanzado el F/m Emerald Life Sciences Innovation ETF (LFSC) en el mercado de valores Nasdaq. Este ETF administrado activamente se enfoca en empresas innovadoras de pequeña y mediana capitalización en biotecnología, farmacéutica y dispositivos médicos. El fondo aprovecha el proceso de investigación propietario de Emerald, el 10-Step Research Process, para identificar empresas de alto potencial en el sector de las ciencias de la vida. El lanzamiento se produce en un momento en que las empresas biopharma emergentes representan dos tercios de las iniciativas de ensayos clínicos y el 56% de las aprobaciones de nuevas sustancias activas en 2023. Con el gasto en salud en EE.UU. alcanzando los 4,5 billones de dólares en 2022 (17,3% del PIB), las proyecciones indican un aumento al 19,7% del PIB para 2032.

에메랄드 어드바이저스F/m 인베스트먼트가 나스닥 증권거래소에 F/m 에메랄드 생명과학 혁신 ETF (LFSC)를 출시했습니다. 이 적극적으로 관리되는 ETF은 생명공학, 제약 및 의료기기 분야의 혁신적인 중소기업에 초점을 맞추고 있습니다. 이 펀드는 에메랄드의 독점 10단계 연구 프로세스를 활용하여 생명과학 부문에서 높은 잠재력을 가진 기업을 식별합니다. 이번 출시는 새로운 바이오 제약 회사가 2023년 임상 시험 시작의 3분의 2와 새로운 활성 물질 승인 56%를 차지하는 가운데 이루어졌습니다. 2022년 미국의 의료 지출이 4.5조 달러에 달하고(국내총생산의 17.3%), 2032년까지는 19.7%로 증가할 것으로 예상됩니다.

Emerald Advisers et F/m Investments ont lancé le F/m Emerald Life Sciences Innovation ETF (LFSC) sur le marché boursier Nasdaq. Cet ETF géré activement se concentre sur des entreprises innovantes de petite et moyenne capitalisation dans les domaines de la biotechnologie, de la pharmacie et des dispositifs médicaux. Le fonds utilise le processus de recherche en 10 étapes propriétaire d'Emerald pour identifier des entreprises à fort potentiel dans le secteur des sciences de la vie. Le lancement intervient à un moment où les entreprises biopharma émergentes représentent deux tiers des débuts d'essais cliniques et 56 % des approbations de nouvelles substances actives en 2023. Avec les dépenses de santé aux États-Unis atteignant 4,5 billions de dollars en 2022 (17,3 % du PIB), les projections indiquent une augmentation à 19,7 % du PIB d'ici 2032.

Emerald Advisers und F/m Investments haben den F/m Emerald Life Sciences Innovation ETF (LFSC) an der Nasdaq gestartet. Dieser aktiv verwaltete ETF konzentriert sich auf innovative kleine und mittelständische Unternehmen in den Bereichen Biotechnologie, Pharmazie und Medizintechnik. Der Fonds nutzt den proprietären 10-Schritte Forschungsprozess von Emerald, um Unternehmen mit hohem Potenzial im Bereich der Lebenswissenschaften zu identifizieren. Der Launch erfolgt in einer Zeit, in der aufstrebende Biopharma-Unternehmen zwei Drittel der Studienanfänge und 56 % der Genehmigungen neuer aktiver Substanzen im Jahr 2023 ausmachen. Die Ausgaben im Gesundheitswesen der USA beliefen sich 2022 auf 4,5 Billionen Dollar (17,3 % des BIP), und Prognosen deuten auf einen Anstieg auf 19,7 % des BIP bis 2032 hin.

Positive
  • Fund targets high-growth small and mid-cap companies in expanding healthcare sector
  • Emerald's proprietary 10-Step Research Process provides specialized research advantage
  • Targets sector where emerging companies dominate clinical trials (66%) and new drug approvals (56%)
  • Exposure to $4.5 trillion U.S. healthcare market with projected growth to 19.7% of GDP by 2032
Negative
  • New fund with no established track record
  • Focus on small and mid-cap companies implies higher investment risk

Insights

The launch of LFSC represents a significant development in the life sciences investment landscape, targeting a sector with substantial growth metrics. The ETF's focus on small and mid-cap companies in biotech, pharmaceuticals and medical devices aligns with current market trends, where emerging biopharma companies are driving innovation - accounting for 66% of clinical trials and 56% of new drug approvals in 2023.

The healthcare sector's projected growth from 17.3% to 19.7% of GDP by 2032, representing a $4.5 trillion market, provides a robust backdrop for this investment vehicle. The active management approach, combined with Emerald's proprietary 10-Step Research Process, positions this ETF to potentially capitalize on the sector's rapid technological advancements and increasing healthcare demands from an aging population.

Actively Managed ETF Provides Investors Targeted Exposure to Leading Life Sciences Innovations in Biotechnology, Pharmaceuticals, and Medical Devices

LANCASTER, Pa.--(BUSINESS WIRE)-- Emerald Advisers, in partnership with F/m Investments, today announces the launch of the F/m Emerald Life Sciences Innovation ETF (LFSC), now trading on the Nasdaq Stock Market under the ticker LFSC. This ETF offers investors exposure to the most innovative companies in the life sciences sector, focusing on biotech, healthcare, and medical device advancements.

“We are excited to bring this ETF to market, offering investors access to some of the most cutting-edge developments in healthcare and biotechnology,” shared Stacey Sears, Senior Vice President & Portfolio Manager at Emerald. “We say “innovation starts small,” as small-cap companies are often first-movers, particularly in sectors like gene therapies and medical diagnostics, where they can be nimble and groundbreaking. Emerald’s proprietary research-driven process focuses on identifying these high-potential firms early, leveraging our sector-specific investment team to capture the most promising life sciences opportunities, positioning the fund for potential long-term growth.”

The F/m Emerald Life Sciences Innovation ETF is actively managed, focusing on small and mid-cap companies who we believe are poised to break through in biotechnology, pharmaceuticals, and medical technology. This sector is particularly compelling as emerging biopharma companies accounted for two-thirds of clinical trial starts in 2023, and 56% of new active substances approved in 2023 originated at these companies (source: IQVIA Institute). “LFSC leverages Emerald’s proprietary 10-Step Research Process, combining fundamental analysis with hands-on research to identify companies that we believe are at the forefront of life sciences innovation, where disruptive advancements push the boundaries of healthcare and can create long-term value for shareholders by capturing early growth opportunities,” added Emerald’s Director of Research, Joseph W. Garner.

Speaking on LFSC, Alexander Morris, CEO of F/m Investments, shared, "The F/m Emerald Life Sciences Innovation ETF provides an opportunity for investors to tap into the transformative advancements taking place in healthcare and biotech. We’re proud to partner with Emerald to offer investors access to the dynamic growth potential of this crucial sector and look forward to developing additional products in the future to meet investors’ needs."

The life sciences industry is experiencing rapid growth, fueled by an aging population, increasing healthcare demand, and accelerated investments in biotechnology and medical innovation. With U.S. healthcare spending in 2022 reaching $4.5 trillion, representing 17.3% of the U.S. gross domestic product (GDP) according to the Centers for Medicare & Medicaid Services, the CMS Office of the Actuary projects an increase in the health spending share of GDP to 19.7% in 2032. The F/m Emerald Life Sciences Innovation ETF provides diversified exposure to companies driving groundbreaking advances in healthcare, offering investors long-term growth potential.

"Emerald has a long history of identifying high-growth opportunities in emerging sectors. The launch of LFSC reflects our commitment to delivering innovative investment solutions that align with long-term growth trends,” said Scott Rehr, CEO of Emerald. “As we explored entering the active ETF space, it was crucial to find a partner with a proven history in ETF governance who understands the complexities involved. That’s why we chose to partner with The RBB Fund Complex. This partnership enables us to bring a new and innovative ETF to market backed by both Emerald’s rigorous research process and RBB’s operational experience.”

In conjunction with the launch of the LFSC, Emerald has released a comprehensive white paper outlining the unprecedented growth opportunities within the life sciences sector. The paper highlights key trends, including how U.S. healthcare spending is projected to reach nearly 20% of GDP by 2032 and the increasing dominance of emerging biopharma in clinical trials and drug approvals.

About Emerald Advisers

Emerald Advisers, LLC is an asset management firm providing research-based portfolio management. Emerald and its subsidiaries provide growth-oriented portfolios for institutions and individuals. Founded in 1991, Emerald provides active U.S. domestic equity portfolio management services to institutional investors and to individual investors via separate account management, a collective investment trust, ETFs and the Emerald Mutual Funds. Managing client funds since 1992, assets managed by these companies totaled approximately $4.5 billion as of September 30, 2024.

About F/m Investments

F/m Investments is a $15 billion multi-boutique investment firm providing diversified investment strategies to advisors and institutional investors across asset classes, markets, and styles. For more information, please visit www.fminvest.com.

About The RBB Fund Complex

The RBB Fund, Inc. and The RBB Fund Trust, together, are a turnkey ETF and mutual fund solution that permits an investment adviser to focus on asset management and distribution, while RBB facilitates the establishment, servicing, and governance of funds. RBB oversees approximately $30 billion in assets, supporting 12 separate investment advisers, over 20 unaffiliated sub-advisers, and over 60 mutual fund or ETF offerings. For more information, please visit www.rbbfund.com.

An investor should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. A prospectus, which contains this and other information about the fund, may be obtained by calling 1-800-617-0004/visiting www.emeraldetfs.com. The prospectus should be read carefully before investing.

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.

The F/m Emerald Life Sciences Innovation ETF is distributed by Quasar Distributors, LLC.

Investing involves risk. Principal loss is possible. The Fund focuses its investments in securities of companies that are categorized in the “life sciences” sector, including companies in the pharmaceutical, biotechnology, health care services, and medical device industries. Because of this, companies in the Fund's portfolio may share common characteristics and may be more sensitive to changes in government funding or subsidies, new or anticipated legislative changes, or technological advances. To the extent the Fund focuses on the health care sector, the Fund may be more susceptible to the particular risks that may affect companies in the health care sector than if it were invested in a wider variety of companies in unrelated sectors. Investments in securities of micro- and small-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of larger-capitalization companies.

Emerald Advisers, LLC

3175 Oregon Pike

Leola, PA 17540

717.556.8900

800.722.4123

www.TeamEmerald.com

Media Contacts:

Emerald

Matt Yemma

Lyceus Group

Myemma@lyceusgroup.com

909-633-9396

F/m Investments

Tucker Slosburg

Lyceus Group

fmpr@lyceusgroup.com

206-635-4196

The RBB Fund Complex

Rex Carlin

Red Mountain Media

rex@redmtnmedia.com

206-240-5108

Source: Emerald Advisers

FAQ

What is the F/m Emerald Life Sciences Innovation ETF (LFSC) investment focus?

LFSC focuses on innovative small and mid-cap companies in biotechnology, pharmaceuticals, and medical devices sectors.

When did the F/m Emerald Life Sciences Innovation ETF (LFSC) begin trading?

LFSC began trading on the Nasdaq Stock Market in 2024.

What percentage of clinical trial starts came from emerging biopharma companies for LFSC's target market in 2023?

Emerging biopharma companies accounted for two-thirds (66%) of clinical trial starts in 2023.

What is the projected U.S. healthcare spending as percentage of GDP by 2032 for LFSC's target market?

U.S. healthcare spending is projected to reach 19.7% of GDP by 2032.

F/m Emerald Life Sciences Innovation ETF

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