Bellevue Asia Pacific Healthcare

Asian stock markets were mixed in July, with the Nikkei 225 falling 2.9%, the Hang Seng Index rising 3.1%, and the CSI 300 Index gaining 3.7%. Australia’s benchmark S&P/ASX 200 edged up 0.2%. Overall, the broader Asia-Pacific equity markets ended the month higher, advancing 1.1%.

The Asia-Pacific healthcare market (+6.0%) outperformed the broader Asia-Pacific equity markets, driven primarily by strong momentum in the China biopharma sector. Despite ongoing concerns over the most-favored-nation (MFN) pricing model in the US and impending tariffs on biopharma products, the approaching timeline for greater clarity prompted investors to reassess their positioning in the healthcare sector. The Bellevue Asia Pacific Healthcare (Lux) Fund (+8.5%) outperformed its benchmark.

Akeso (+68.1%), Sino Biopharm (+43.0%), Innovent (+25.0%), BeOne Medicines (+22.7%), and CSL (+10.7%) were among the top contributors to the fund’s absolute performance. Akeso’s shares have surged since the beginning of the month following reports that AstraZeneca is in talks with Summit to license ivonescimab, a PD-1/VEGF bispecific antibody for the treatment of lung cancer, in a deal valued at up to USD 15 bn and including an upfront payment of several billion dollars. Ivonescimab is Akeso’s flagship asset and is currently in phase 3 clinical trials, led by Summit outside of China. If completed, the deal would rank among the largest out-licensing agreements in China’s biotech sector and would enhance ivonescimab’s commercial prospects by leveraging AstraZeneca’s extensive expertise in oncology. Sino Biopharm has acquired LaNova Medicines, a Chinese biotech company in which it previously held a 5% stake, to further expand its innovative pipeline. LaNova’s portfolio includes LM-299, a PD-1/VEGF bispecific antibody for the treatment of advanced malignant solid tumors, which was out-licensed to Merck & Co. in 2024. The acquisition represents a valuable addition to Sino Biopharm’s innovation strategy. Out-licensing is a key growth driver for China’s biopharma sector, with Innovent well positioned to benefit. Its share price rose in July on this theme. Innovent’s IBI363 for the treatment of solid tumors stood out at the 2025 American Society of Clinical Oncology (ASCO) meeting, showcasing the company’s strong R&D capabilities.

M3 (–9.3%), Takeda (–9.2%), Terumo (–7.5%), Chugai (–6.4%), and Shionogi (–6.1%) were the largest detractors from the fund’s absolute performance. Takeda’s TAK-861 phase 3 clinical data disappointed investors as efficacy was slightly weaker than phase 2 , raising concerns about its optimal dosing and competitive positioning. TAK-861 (oveporexton) is being developed to treat narcolepsy type 1, further details of the phase 3 data will be presented in September at the World Sleep Congress. Chugai missed Q2 investor expectations due to a delay in Hemlibra shipments. Hemlibra is approved for routine prophylaxis to prevent bleeding in patients with hemophilia A. Terumo, a medtech company with significant US exposure, faced pressure from tariff concerns, while Shionogi declined on worries over its HIV franchise, patent expirations, and falling royalty income. All performance figures are in US dollars, with fund performance based on B shares (in US dollars).

Asia is the most dynamic growth region in the world, and it accounts for more than half of the world’s population. Asian emerging markets are forecast to account for more than 50% of global GDP by 2050. As household incomes rise, the economic growth model of Asian countries will shift from manufacturing to the services sector. A growing middle class is fueling demand for modern medicine. Healthcare ranks increasingly high on their wish list. Billions are being invested in infrastructure, technology, and research to modernize the healthcare systems in emerging-market countries. This is giving a greater swath of the population access to better healthcare. Meanwhile, rapid population aging is also stoking demand for healthcare. In 30 years’ time there will be 400 to 500 million people over 60 in China alone, and they will have a growing need for modern health services and medicines.

Japan, which has been referred to as «the world’s demographic laboratory,» has championed cutting-edge innovation for decades. The Land of the Rising Sun boasts technology leadership in numerous fields, ranging from therapeutic antibody technology, immunotherapy, and robotics to digitalization, diagnostics, and medical imaging systems.

The fund offers defensive access to Asian emerging markets and exciting investment opportunities in technology leaders throughout the region. It invests in the entire healthcare system value chain, from generic drug producers and biotechnology companies to medical device manufacturers and digital health specialists.