Healthcare is entering a golden age of innovation, with genetic sequencing and other advance technologies enabling a rapid pace of medical breakthroughs
At the same time, demand for care is growing as populations age and unmet medical needs persist. These dynamics are creating sizable growth opportunities – with potentially positive outcomes for patients and investors alike.
The opportunity for investors
Superior growth potential
Opportunity for digitisation
Technology is transforming almost every aspect of healthcare, from drug research and surgical practices to real-time patient monitoring. But we are still in the early stages of this digital shift; the global market for minimally invasive robotic surgeries, for example, is expected to reach €21.9 billion by 2030, up from €8.1 billion in 2020.2
Favourable demographics
Healthcare spending as a percentage of GDP is rising as populations age, particularly in large developed economies. In the US, people over age 65 spend nearly 3x more on healthcare than younger adults, and through the end of the decade, 10,000 people per day in the US will turn 65.3 Between 2015 and 2050, the proportion of the world’s population over 60 will nearly double from 12% to 22%.4
Growing investment
Private and public investment in healthcare innovation is gaining urgency. Over the last decade, venture capital investment in European biotech and healthcare firms has increased more than 3x, and in the US, more than 7x.5
Defensive characteristics
In addition to offering growth opportunities, the healthcare sector has also typically held up better than the broader equity market amid downturns. Looking at declines of 15% or more in the MSCI World IndexSM since 2000, the MSCI World Health Care IndexSM captured just 47% of losses, on average.6
A differentiated approach to healthcare investing
Janus Henderson's Healthcare Team seeks to invest in companies worldwide that are addressing high, unmet medical needs and providing efficient and cost-effective healthcare solutions. The healthcare sector, with its rapid growth and high complexity, offers opportunities for differentiated research. Understanding the science and the business behind new therapies and having a disciplined investment process are pillars of our approach.
Our funds are designed to:
Identify healthcare's best scientific and commerical opportunities
Focus on small- and mid-cap biotech companies, aiming to maximise the sectors growth potential
Mitigate downside risk through a proprietary value-at-risk framework
How to integrate healthcare in my portfolio?
Investors who have added health care to their global equity portfolio would have experienced superior risk adjusted returns, which you can see using Janus Henderson, Edge Proprietary analytics tool comparing the risk and return of two portfolios over time.
— Sabrina Denis,
Senior Portfolio Strategist
Why invest in healthcare with Janus Henderson?
Over 100 years
experience
A dedicated team of 9 members with more than 100 years combined of healthcare investing experience.
20+ years healthcare
strategy now
available as an OEIC
Over the long term, a proven ability to navigate the gap between healthcare’s top- and bottom-performing stocks – historically, the widest of any sector – by staying focused on risk/reward.
A long-term
approach
The quality of our investment team, the depth of our research, and our disciplined long-term approach set us apart in pursuing superior risk-adjusted returns in healthcare.
Insights
Meet the team
Andy Acker, CFA
Portfolio Manager,
Global Life Sciences Strategy
27 years of experience
Daniel Lyons, , PhD, CFA
Portfolio Manager, Global Life Science
27 years of experience
Agustin Mohedas, PhD
Portfolio Manager, Biotechnology Strategy
10 years of experience
Footnotes
1 Food and Drug Administration (FDA), Janus Henderson, ISI Research. Data as of 31 December 2021. Blockbuster drug = > €900 million in annual sales.
2 BioSpace, “Minimally Invasive Surgery Market Size to Reach $23.4 billion by 2030,” 2 May 2022.
3 U.S. Census Bureau and Centers for Medicare & Medicaid Services. Spending data based on figures for 2014.
4 World Health Organization, “Ageing and health,” 1 October 2022.
5 Invest Europe, Q4 2021 PitchBook-NVCA Venture Monitor. Data as of 31 December 2021.
6 Janus Henderson Investors, FactSet. Data as of 31 December 2022.
Access transformational change with thematic investing. Thematic investing enables investors to benefit from the powerful megatrends that are disrupting and shaping the future, unlocking the potential for stronger and more consistent returns.