Can medical breakthroughs mark a turning point for the health and biotech sector?
After several years of weak development, several factors indicate a more attractive investment climate for the healthcare and biotechnology sectors. In this webinar, the managers of DNB Healthcare and DNB Biotechnology share their assessments of growth opportunities, innovation trends, and risk factors in the market.
Subtitles: Captioned in the original language and translated into other languages with the help of AI. We accept no liability for any linguistic errors in the translation. Select a language, or turn subtitles on/off, by starting the video and clicking the speech bubble in the bottom right corner.
Health on the threshold of a new growth period
In a conversation with Marius Brun Haugen, the managers Benedicte Bakke and Rune Sand provide an update on the prospects for the DNB Healthcare and DNB Biotechnology funds. After a period where the healthcare sector has been among the weaker areas of the market, the managers believe the picture is beginning to change. While the broad stock market has risen sharply in recent years, healthcare stocks have largely been left behind. However, since the summer, the sector has shown signs of improvement, and in recent months, healthcare has performed stronger than the broad market. At the same time, regulatory uncertainty and political noise have received less attention, allowing investors to refocus more on the companies' fundamental development.
Innovation drives the next wave of growth
The managers highlight several structural growth drivers that can contribute to increased earnings growth in the coming years. Among the most important are developments in cardiometabolic diseases, precision medicine, medical technology, and robotic surgery. Additionally, artificial intelligence is expected to play an increasingly important role, both in research, drug development, and the efficiency of healthcare systems. DNB Healthcare is positioned broadly across the value chain, with exposure to both pharmaceuticals, diagnostics, medical technology, and the companies that provide the infrastructure behind the innovation.
Biotech with strong repricing, but still selective opportunities
In biotech, the development has been particularly strong over the last one and a half years. The managers point to better functioning capital markets, increased risk appetite, and a broader repricing among small and mid-sized companies as important explanations. At the same time, it is emphasized that selection is becoming increasingly important. The fund is therefore concentrated on companies with strong commercial products, robust balances, and significant innovation potential. M&A activity is also highlighted as a central driving force, as many larger pharmaceutical companies need to strengthen their product portfolios through acquisitions and partnerships.
In the webinar, the managers delve deeper into sector prospects, the significance of AI, specific investment cases, and how the funds are positioned for the opportunities they see in the healthcare and biotech markets moving forward.
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