Macro Research Global Healthcare: Still in the pink o | FSMOne SG - Research Highlights

Macro Research

Global Healthcare: Still in the pink of health despite some challenges

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• The healthcare sector is made up of many moving parts, and is bolstered by growth from long-term secular drivers such as an ageing and chronically ill population.

• Higher rates and inflationary pressure created a de-risking environment, and are amongst some of the factors contributing to a massive sell-off in the biotech segment.

• While drug pricing reforms have been talked about, we think that massive drug pricing reforms are unlikely given the divided nature of the congress.

• An improving Covid-19 situation, driven by higher global vaccination rates and a milder Omicron variant, has brought much optimism to the outlook for medical devices, as elective surgeries are expected to pick back up.

• We maintain a 3.0 Stars “Attractive” rating for the healthcare sector. Based on our estimations, the industry has an upside potential of 19% by 2024.

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