We recently hosted a webinar with two of the top healthcare specialist managers with whom we have investments, Avoro and Perceptive. The webinar covered views on the virus and why the investment outlook is so compelling for the sector, key points of which are outlined below:
- Innovation led growth, particularly in biotechnology, is happening at an unprecedented pace.
- Society’s perception of the value of the sector (which influences the risk of regulation) has shifted massively from highly negative to positive.
- US political developments in 2020 have been positive for the sector.
- Healthcare earnings are much more defensive than most other sectors in a recession.
- The sector entered this crisis trading at and unusually low valuation.
- Long term trends such as an ageing global population and increased demand from emerging markets continue to provide powerful long-duration growth tailwinds.