Bellevue Asset Management AG
Bellevue Asset Management AG: Emerging Markets Healthcare sector comeback
Bellevue Asset Management AG
/ Key word(s): Market Report
Media release of February 22, 2023 Emerging Markets Healthcare sector comeback Numerous fundamental factors are indicating that the recent advance by healthcare stocks across the Asia-Pacific region and in emerging market countries is solidifying into a sustained recovery. That applies to Chinese healthcare stocks in particular. The release of pent-up demand in China after zero-COVID restrictions were eased and initial regulatory approvals of innovative Chinese drugs have created promising growth dynamics. Remo Krauer, Portfolio Manager, Bellevue Asia Pacific Healthcare Fund / Bellevue Emerging Markets Healthcare Fund After a string of difficult years, a trend reversal is under way in emerging market healthcare stocks. The sector comeback in China is particularly obvious. The upward business momentum of healthcare companies there can be traced to the reopening of the economy after the government abandoned its zero-COVID policy on the one hand and to government reforms to enhance the healthcare systems on the other, which have created new growth triggers. After all the uncertainty of the past few years, the Chinese healthcare industry can again unleash its full potential. The Chinese healthcare market is forecast to show average annual growth of about 10%. Various subsectors of China’s healthcare industry are profiting from the reopening of the economy. Higher numbers of patients for stationary care have improved clinic capacity utilization. Surgical procedures are one example here. An increase in these procedures is, in turn, boosting business in various subsegments of the medtech industry, for example for manufacturers of prostheses for hip and knee joint replacement procedures in orthopedics, or stent and heart valve providers in cardiology. Sales are also on the rise at distributors and pharmacies, where foot traffic has picked up. China’s government had no other choice To summarize, China offers the most exciting healthcare universe of all emerging market countries today in view of the attractive valuations and high sales and profit growth rates. Chinese companies have clearly improved their innovative capabilities. Biotech companies such as Legend Biotech and BeiGene are now marketing their cancer treatments in the US. BeiGene’s leukemia medicine marketed as Brukinsa belongs to the drug class of BTK inhibitors and has a very good chance of becoming a “best-in-class” BTK inhibitor owing to its superior efficacy. That same applies to Legend Biotech’s cell therapy used to treat multiple myeloma. WuXi Biologics is another company worth noting. It offers R&D and manufacturing services for biologics that are globally competitive. Breakthrough in Alzheimer’s research Interesting investment opportunities in India and Brazil China heavily weighted in fund portfolios
Author: Remo Krauer
More information Bellevue Asia Pacific Healthcare Bellevue Emerging Markets Healthcare
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Bellevue – Excellence in Specialty Investments Bellevue is a specialized asset manager listed on the SIX Swiss Exchange with core competencies covering healthcare strategies, entrepreneur strategies, alternative and traditional investment strategies. Established in 1993, Bellevue, a House of Investment Ideas staffed by 100 professionals, generates attractive investment returns and creates value added for clients and shareholders alike. Bellevue managed assets of CHF 9.6 bn as at June 30, 2022.
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