Big healthcare inequalities exist around the globe, as Covid-19 has shown and as Kieger AG’s chart of the month illustrates. But will this gap close? We don’t think so. Companies and investors have a strong focus on just a few disease areas. Especially oncology and immunology (see chart) represent big, attractive markets of the western world with high prizes, quick results and straight forward regulatory and distribution processes. Other therapeutic areas with a high disease burden remain underserved. We dare to care and invest in companies that focus on underserved healthcare needs.
What do you think, how many people still take their prescribed drugs after 12? Actually, the numbers are quite scary and vary significantly by the type of the disease. Watch the video to find out more.
Will they/Won’t they? The Jackson Hole meeting at the end of August and the question around slowing the pace of bond purchases spooked the market throughout the whole month (next to the Delta-variant). In such times of uncertainties Healthcare (2.8%) did what it is supposed to do: it outperformed the market (2.5%). Year to date, Healthcare (17.2%) trades now almost on par with the global markets (17.9%)
The MSCI World Healthcare NR Index gained 3.72% in July, outperforming the MSCI World NR by 1.93%. Markets were impacted by inflation figures, which again surprised on the upside. The employment situation continues to improve, to the point that several sectors are struggling to find the workers they need. COVID, particularly the Delta variant, has led to a new bout of volatility, with policymakers across the globe opting for diverging strategies to deal with this latest development of the pandemic.