Medtech & Services & Digital Health
While the stocks of drug makers can come under pressure when politicians start talking about drug price controls or when new generic drug approvals are announced, the medtech sector has maintained its status as a safe haven. It is long accustomed to pricing pressure on older generation products, its innovation skills are obviously intact, and the transformation of the sector – from equipment and device manufacturers to integrated services providers – continues unabated.
The sector is distinguished by above-average profit growth with lower-than-average volatility. These strengths are particularly attractive in a market environment where investors are uncertain about the direction in which the economy is headed. Economically non-sensitive demand for healthcare services remains intact and is gaining additional momentum from rising prosperity in newly industrialized countries.
Above-average profit growth at medtech companies
Historical earnings per share growth for the total market averages about 4% but about 11% for medtech & services companies. In the medtech sub-sector, companies that offer diabetes treatments, minimally invasive heart valve repair and replacement solutions, and robotic surgery systems are particularly interesting. In the services segment, US health insurance stocks currently offer considerable upside potential. The gradual privatization of the US health insurance system and efforts to lower treatment costs are the main value drivers.
Global mega trends such as demographic change, the increase in diseases of civilization and the resulting growth in demand for healthcare services are pressuring healthcare systems to become more efficient in order to bring down costs. Meanwhile new technologies such as smartphones have dramatically altered our everyday lives. These technologies are now being adopted by the healthcare industry and the advent of “digital health” is creating added value for health professionals and patients while delivering the efficiency gains and cost-savings that healthcare systems so desperately need. Using disruptive technologies, ranging from sensors and smartphones to cloud solutions, companies are rolling out new or improved products and services that offer added value to stakeholders across the healthcare landscape. Examples of the numerous breakthroughs digital health has already achieved are telemedicine, robotic surgical systems and continuous glucose monitoring systems. The amount of risk capital being invested in digital health is growing at a fast pace and spurring additional innovation.
Our Healthcare Team consists of an interdisciplinary mix of experts with many years of experience in the fields of biotechnology, medical technology and generics. Many of our experts are graduate biochemists or natural scientists with further economic training. The experienced team analyses a global universe of 600 listed healthcare companies by means of fundamental analysis using various quantitative and qualitative parameters. An important part of the research is regular company visits and participation in technical and financial conferences.
Team Medtech & Services
Stefan Blum, CEFA, Lead Portfolio Manager
- Since 2008 with Bellevue Asset Management as lead portfolio manager of the BB Adamant Medtech & Services (Lux) Fund
- 2004 – 2008 Sonova, head investor relations
- 2000 – 2004 Obtree Technologies Inc., finance and investor relations
- 1996 – 2000 Bank Sarasin, medtech analyst
- Master’s degree in Business Economics, University of St. Gallen (HSG), CEFA charterholder
Marcel Fritsch, Portfolio Manager
- Since 2008 with Bellevue Asset Management as portfolio manager of the BB Adamant Medtech & Services (Lux) Fund
- 2004 – 2008 Deloitte & Touche LLP, business consultant with focus on the medtech and pharmaceutical sectors
- Master’s degree in Business Economics, University of St. Gallen (HSG)
Our investment solutions
Bellevue Asset Management’s range of healthcare sector investment products is the broadest in Europe and, with the investment company BB Biotech, it has been an active and widely recognized investor in this sector for more than 20 years. The Healthcare Index created by Adamant in 2007 reflects the findings of its fundamental research. It is composed of the 40 most attractive healthcare stocks worldwide and is recalibrated every six months.
BB Adamant Medtech & Services (Lux)
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BB Adamant Digital Health (Lux)
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