Talking Point  

Investing in healthcare innovation

  • Explain the trends developing in healthcare
  • Understand how innovation in healthcare impacts investments
  • Explain how investors should approach investing in healthcare
CPD
Approx.30min
Investing in healthcare
Exploring the opportunities and threats beyond the pandemic
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The pandemic has accelerated the speed at which the healthcare sector has developed; with rapid rollouts in vaccines, therapeutics, diagnostics and patient care.

Traditionally, healthcare has long been considered a defensive sector.

However, today’s healthcare sector is a combination of the defensive and the opportunistic, even though the defensive still accounts for the lion's share.

The large cap pharmaceutical names, tend to be less volatile and impacted less by recessions than the broader market.

Towards the opposite end of the market cap scale, where the business model is much more nascent, are companies unlikely to be classified as defensive.

Here you can expect much more volatility with trial readouts, regulatory change or moves in interest rates having a much bigger impact on share prices.

So as this sector evolves, where do the opportunities lie for investors looking for a diversified portfolio and what business and investment principles do they need to take heed of?

This report, which explores these themes, is worth 30 minutes of CPD.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Jasveet Brar, which type of medical development will drive a revolution in health care?

  2. True or false, Alex Gold says investors need to focus on businesses and their fundamentals for consistent, long-term and attractive returns.

  3. According to Jasveet Brar, what are the two major factors driving a demand for healthcare?

  4. True or false. Innovative healthcare and biotech stocks are typically not volatile.

  5. Why does Luke Barrs highlight opportunities in small-mid cap biotech businesses?

  6. Why does Henk Grootveld describe healthcare innovation as a good diversifier?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain the trends developing in healthcare
  • Understand how innovation in healthcare impacts investments
  • Explain how investors should approach investing in healthcare

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