What innovation looks most exciting for 2024?
Steve Smith, investment director at Capital Group, tells us why healthcare innovation is worth keeping a close eye on for the coming years and how investors can benefit from this theme.
Watch the full length interview with Steve here
View the transcript
So I think healthcare innovation, we genuinely think that we’ve entered a golden era of healthcare innovation. And we think that this era will have multi-decade tailwinds. And that’s really being driven by the substantial increase in the number of new drug platforms that’s really accelerating the pace of drug discovery, drug innovation, and bespoke medicine. As of today, New Perspective has around 16% exposure to healthcare companies, which is very close to the recent all time higher in, in healthcare. And right now we’re particularly interested in selective, large, fast growing pharmaceutical companies that have visible durable earnings, where the investment thesis to invest in these companies is based on drugs that are already approved by the regulators and are already generating revenues for these companies. But importantly, these drugs are addressing very large, expanding but currently underserved medical end markets. So think about obesity, diabetes, dementia, and oncology, so cancer. In fact, obesity and dementia are arguably two of the few remaining untapped drug frontiers in the global healthcare sector today. And for those companies that can find drugs to tackle those unmet needs, there could be substantial revenue and profit upside.
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