Dancing to the melody of Glucagon-Like Peptide-1 (GLP-1)
In August, rising bond yields, a decelerating Chinese economy and seasonally low volumes sent the markets down across the board. Healthcare was the second-best performing sector (-0.8%).
The readout of Novo Nordisk’s SELECT study (showing improved cardio-vascular outcomes) was the single biggest healthcare event of the month and probably the year. The results may open the door to wide reimbursement for GLP-1 weight-loss drugs. This led to an overreaction with significant price movements amongst many companies as markets just made blanket assumptions of a healthier, thinner world (Huge obesity drug volumes? Less surgeries? Less diabetics? Less sleep apnea?).
First half earnings closed amidst an uncertain global macro-economic environment, with global stocks on track for their worst month in more than a year. On the earnings side, Healthcare mirrored the broad market, with the majority of companies at or above market expectations in terms of numbers. However, this was not always a share price outperformance guarantee as “whisper” expectations were often higher.
| Healthcare | Medtech | Services | Pharma | Biotech | Tools | World | |
| 1M | -0.8% | -6.5% | -5.2% | 2.7% | 1.4% | 0.3% | -2.4% |
| 3M | 2.8% | -1.7% | -1.1% | 4.7% | 6.0% | 5.7% | 5.8% |
| YTD | 1.2% | 5.6% | -9.3% | 5.5% | -2.6% | -0.6% | 15.9% |
| 12M | 9.5% | 10.9% | -6.2% | 17.9% | 12.3% | -0.8% | 16.3% |
- Eli Lilly 22%
- Teva 16%
- Novo Nordisk 15%
- Amgen 12%
- Regeneron 11%
- Insulet -31%
- ResMed -28%
- Sysmex -21%
- Dexcom -19%
- Olympus -22%
This news article has been issued through Kieger AG and is for distribution only under such circumstances as may be permitted by applicable law. This document is for information purposes only and does not constitute an offer. Past performance is not a reliable indicator of future results. The details and opinions contained in this document are provided by Kieger without any guarantee or warranty and are for the recipient’s personal use only. All information and opinions contained in this document are subject to change without notice. This document may contain statements that constitute “forward looking statements”. A number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. Data source: Statestreet / Factset.
