Bellevue Asia Pacific Healthcare

Asian stock markets fell in November, with the Nikkei 225 down 5.4% and the CSI 300 down 1.8%. The Hang Seng Index was nearly flat (-0.3%), while Australia’s S&P/ASX 200 slipped 2.4%. Overall, Asia-Pacific equities declined 2.2% for the month.

The Asia-Pacific healthcare sector (+2.8%) outperformed the broader market thanks to defensive portfolios and key political risks eased in the market, including Pfizer’s most-favored-nation pricing resolution and obesity-drug pricing agreements by Eli Lilly and Novo Nordisk. Mostly solid quarterly results also supported the sector. The Bellevue Asia Pacific Healthcare Fund (+2.7%) rose in line with its benchmark.

Astellas (+20.4%), Chugai (+17.2%), BeOne (+10.0%), Takeda (+7.0%), and CSL (+4.6%) were among the top contributors to the fund’s absolute performance. Astellas posted first half results better than expected and upgraded guidance, which increased investor confidence. As Eli Lilly reached agreement with US government on weight loss drug pricing and oral weight loss drug orforglipron likely to be approved earlier than expected, Chugai benefited from this as orforglipron is its most important pipeline drug. BeOne has become the US market-share leader in blood-cancer therapies with its drug Brukinsa, surpassing competitors AstraZeneca and Eli Lilly. Even though Takeda missed expectation, the outlook for next year – including the management change, the key product launch and the clinical readout – has improved. CSL regained some traction as the stock had bottomed previously on slowing vaccine growth, and now CSL sees potential upside from this low point.

Sysmex (-15.1%), Legend (-14.5%), WuXi Biologics (-14.1%), Samsung Biologics (-10.4%) and Hoya (-7.8%) were the biggest detractors from the fund’s absolute performance. Sysmex missed investor expectations and cut guidance on weaker China results. Legend faced rising competition for its flagship blood-cancer therapy Carvykti and WuXi Biologics declined in sync with the broader Chinese biotech market, further impacted by profit-taking after earnings. Samsung Biologics, which resumed trading following a stock spinoff, saw volatility as investors repositioned and evaluated the new entity. Hoya gave back part of last month’s gains, driven largely by profit-taking.

All performance data in USD/B shares.

Asia is the world’s most dynamic growth region, home to more than half of the global population. By 2050, Asian emerging markets are projected to account for over 50% of global GDP. As household incomes rise, economic growth in many Asian countries is expected to shift from manufacturing toward services. A growing middle class is driving stronger demand for modern medicine, with healthcare increasingly ranking as a top priority. Billions are being invested in infrastructure, technology, and research to modernize healthcare systems across emerging markets, expanding access to quality care. At the same time, rapid population aging is further boosting demand. In 25 years’ time, China alone is expected to have nearly 400 million people over the age of 65, creating a significant need for advanced healthcare services and medicines.

Japan, often referred to as «the world’s demographic laboratory,» has been a champion of cutting-edge innovation for decades. The country holds technology leadership in fields ranging from therapeutic antibody development and immunotherapy to robotics, digitalization, diagnostics, and medical imaging systems.

The fund provides defensive exposure to Asian emerging markets while offering attractive opportunities in the region’s technology leaders. Its investments span the entire healthcare value chain, from generic drug manufacturers and biotechnology firms to medical device makers and digital health specialists.