In this PERSPECTIVES Special, we investigate the structural drivers of healthcare along with the recent developments and main opportunities in the sector. We also provide a market outlook focused on earnings prospects, valuation, and potential cyclical tailwinds.
Key takeaways:
- Healthcare has experienced a period of groundbreaking innovation in recent years. In response to the COVID-19 pandemic, applications of mRNA vaccines expanded rapidly and the MedTech space experienced a huge boost. Drugs repurposed for weight loss have also attracted widespread attention.
- Population growth and ageing represent structural drivers for a long-term and sustainable growth of healthcare sector, as both government and private spending on the sector increases. Innovation is a key feature for the sector’s attractiveness, especially as it is coupled with digitization and the adoption of AI technologies.
- As some of the temporary challenges that led to recent underperformance could abate soon, strong fundamentals and attractive valuations present interesting opportunities. However, being selective is the key, given the sector’s diverse range of industries.
