Did you know that antibiotic resistance is one of the biggest public health threats of our time? And
yet it is often overlooked by healthcare companies and investors. Hi, I am Camille Rigaud from Kieger.
Every year, approximately 700,000 people die from antibiotic resistance and, by 2050, this number
could reach 10 million if no action is taken according to the UN. Without effective antibiotics to treat or prevent infections, common surgical procedures such as a hip replacement or a C-section, for example, could become too risky to perform. The antibiotic arsenal has been dwindling, with the number of new antibiotics approved in the US declining, as it has also elsewhere in the world.
Large pharma companies have left this business due to unattractive economics and small biotech
firms have been trying to fill the gap. However, many struggle to get funding and many have filed for
bankruptcy or were sold off.
We need more industry commitments as well as new incentive mechanisms to drive the development
of novel and effective antibiotics. Covid is a reminder of the threat of new infectious diseases and that the world needs to be better prepared for the next threat.
Healthcare returned -3.2% in June, extending its year-to-date outperformance versus global equities to 10.2%. In June, central banks were in the limelight as hopes that inflation had peaked were again crushed. The FED then proceeded with its largest rate hike since 1994 – hinting of another hefty 75 bp increase in July. Ditto for the ECB, which confirmed a 25 bp hike for July. And even the Swiss National Bank surprised markets with its first hike (50 bp) in 15 years. These central bank actions and ongoing worries of a FED-induced soft landing caused global equities to drop 8.7% in June.
For this month, our "Chart of the Month” becomes a “Discussion of the Month”. View Urban Fritsche's, Raphael Oesch and Flavio Mancino key takeaways from this month's conferences in the US.
We attended the 43th annual Goldman Sachs Healthcare Conference 2022 from June 13th to 16th in Los Angeles, where we focussed mostly on Medtech and Service companies. We came away convinced that the healthcare sector will once again prove its defensive qualities as the dynamics of the healthcare market are less affected by the current macroeconomic backdrop.