Edmond de Rothschild | Healthcare Revolution

Edmond de Rothschild | Healthcare Revolution

Companies exposed to the Healthcare Revolution continue to record sales growth on average, but they are mainly growth companies. However, the swift and significant rise in bond yields has put a number of stocks under pressure.

Most of the rise in bond yields seems to have passed, which should help to stabilise growth stocks. In the healthcare sector, investors are focused on a limited number of stocks, notably the two major companies exposed to anti-obesity drugs, and are ignoring the attractive valuations of the other companies. The introduction of these drugs may in some cases be disruptive to their peers, particularly in diabetes and dialysis.

Nevertheless, the prospects for model change offered by AI and the normalization of bond yields should be powerful accelerators for the expansion of these stocks in the future.

Edmond de Rothschild CIO Office - November 2023

Arun R. Sayani

Founder & CEO of Avanz Bio LLC

6 个月

AI won't change early molecules from being an Angel Investment. Which is why we need to focus on Phase 2 to Phase 4 FDA approved patents.

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