Healthcare is dominated by big pharma. – Is it really? Hi, I’m Alexandra Egg from Kieger.
What was a fact a decade ago has changed dramatically over time. As this chart shows, today, big pharma only accounts for around half of the largest healthcare companies.
So what happened? There are various reasons. One of them is bad governance. Two of the largest players 10 years ago, Bayer and Teva, both faced massive ESG-scandals, which decimated their market value and hurt their reputation and business outlook.
On the other hand, in areas such as Healthcare Services and Medtech we saw true scientific innovation combined with innovative business models that pushed those companies into the top 20.
We at Kieger focus on good governance and responsible, innovative business models, because we believe that it is the only way to achieve sustainable long-term returns.
We dare to prioritize sustainability. Because we dare to care.
Rarely are health inequalities more apparent than when walking around San Francisco during the J.P. Morgan Healthcare Conference. In our chart of the month, Raphael Oesch (Portfolio Manager), takes a look at the statistics and discusses some of the reasons behind the figures.
We recently attended the 41st J.P. Morgan Healthcare Conference in San Francisco, which took place from January 9th to January 12th 2023. Our overall conclusion from the conference is that the industry remains in good shape. The key themes that emerged during the week from a devices and services perspective were, the rise of value-based care and innovation & digitalisation. However, it also became clear that the macroeconomic environment is still the dominant force behind (sub) sector performance.
Day after day currently feels like a roller coaster ride, going up because of better than hoped for CPI numbers, down because of looming recession fears, and back up because of a less hawkish FED speech. Are we there yet? What do you think?