Healthcare 02 (May 15 - Dec 25)

[behappyalways]

How Amazon, CVS and Walgreens Are Tapping Into the $4 Trillion Healthcare Market
https://m.youtube.com/watch?v=v2MjLycLLdk

[behappyalways]

The Ultimate Settlement! The Sackler Family of the "Pain Relief Empire" of the United States Awarded $6 Billion in Compensation

終極和解金! 美國「止痛帝國」薩克勒家族判賠60億美金｜方念華｜FOCUS全球新聞 20230601@tvbsfocus

https://m.youtube.com/watch?v=SW9yZx2bkoE

[behappyalways]

4. The Scale of Pharma Marketing

According to Kantar data -- Pharma ads are the news’ biggest customers:

https://twitter.com/george__mack/status ... 4198600706

[winston]

Hospitals Made More Money During COVID Pandemic

About three-quarters of the hospitals analyzed by researchers had a positive net operating income in 2020 and 2021. That was up about 12 percent from before the pandemic.

The researchers also found that 68 percent of the hospitals recorded an improvement in the net operating income from before the pandemic, with a median change of $4.4 million.

Another study, analyzing data from 952 hospitals, found a wide range of federal funding, with a quarter receiving less than $5 million and 8 percent receiving more than $50 million.

Hospitals affiliated with academia received more money, as did hospitals with higher numbers of COVID-19 cases, the researchers found.

Source: Epoch Times

https://www.theepochtimes.com/hospitals ... ck83wP4%3D

[winston]

Global Healthcare – solid beneficiary of AI innovation

Broad adoption and application of artificial intelligence (AI) and machine learning (ML) technologies, have an immense potential to unlock improvement in productivity and transform many parts of the healthcare sector.

In pharmaceutical and biotech segment, companies benefit from the adoption of AI/ML technologies in their businesses from
(i) higher success rates
(ii) increased pipeline of products, and
(ii) cost savings.

Given improved productivity in key pre-clinical and clinical activities undertaken by these companies, we believe companies leveraging on AI/ML technologies can increase the pipeline of effective products that could see higher success rates in clinical trials, leading to longer commercial life-span of products and increasing the revenue run-rates of their product portfolios, ultimately leading to higher returns on investments.

Shortened durations of both drug development and testing phases would also lead to direct cost savings for the companies.

Given the supportive nature of the life science and diagnostics business to the healthcare sector, companies in this segment are keen to integrate AI/ML technologies within their products as the processing and analysis of large datasets can lead to better accuracy and generation of quality insights into research and diagnostics outcomes.

Within the medical devices segment, better monitoring and analysis of huge amounts of data collected from medical devices improve patient diagnostics, generate faster resolution of cases, lower false diagnosis rates, and improve physician efficiencies.

Over time, as growing healthcare datasets are analysed using AI/ML technologies, companies that are at the forefront of the AI/ML technology adoption will see a superior product portfolio due to the continuous improvement from the positive feedback loop.

Finally, healthcare services is a broad healthcare segment which is also likely to see improvement in productivity and efficiency from adoption of AI/ML technologies ranging from better patient matching, improved patient outcomes, optimised insurance coverage for patients, faster and more efficient claims processing, to enhanced patient and physician services and solutions.

Within the healthcare sector, we like Glaxosmithkline (GSK LN), Roche Holding (ROG SW), Sanofi (SAN FP), Chugai Pharmaceuticals (4519 JP), CSPC Pharmaceuticals (1093 HK), Sinopharm Group (1099 HK), IQVIA Holdings (IQV US), Medtronic (MDT US) and Elevance Health (ELV US). BUY.

Source: OCBC

[winston]

China’s anti-corruption drive erases US$9 billion of market value in healthcare stocks deemed as haven assets

The CSI 300 healthcare index has fallen almost 5 per cent over the past fortnight, while the CSI 300 gauge has hardly changed

The government’s anti-corruption drive has seen the number of hospital chiefs under investigation across the country more than double to 150 this year

by Zhang Shidong

Source: SCMP

https://www.scmp.com/business/china-bus ... 5fe46378c2

[winston]

CHINA HEALTHCARE – SHORT-TERM PAIN BUT LONG-TERM BENEFIT

The MSCI China Healthcare Index declined ~7% while Chinese Healthcare stocks under our coverage corrected by ~3% on average over the past two weeks, after Chinese authorities widened its anti-corruption crackdown on the sector.

As a recap, on 28 Jul 2023, the Central Commission for Discipline Inspection (CCDI) held a meeting in Beijing to deploy a centralised crackdown on corruption in the Healthcare sector across the country.

This is the third time within half a month that officials have expressed determination to deploy a one-year nationwide rectification against corruption in the Healthcare sector.

Market sentiment took a hit due to concerns over the potential negative impact from the anti-corruption campaign.

We believe this round of reforms will further reduce unfair competition and promote research and development (R&D), benefiting the sector over the long run.

However, investors should be mindful of short-term share price volatility as more details and guidelines could be announced.

In addition, we could see a potential slowdown on sales growth as sales/marketing activities could be delayed/reduced.

In terms of the impact on sub-sectors, the segments which are more exposed to hospital procurement such as pharma, devices and distributors, could be more negatively impacted while Contract Development and Manufacturing Organisations (CDMO)/Contract Research Organisations (CRO) and retail pharmacies are likely to be less impacted, in our view.

Moreover, we believe companies with high selling expenses to revenue are likely to face bigger pressure.

Nevertheless, we believe the anti-corruption reforms will benefit companies with strong R&D capabilities and drug pipelines in the long-run, barring uncertainties in the short-term.

In the long run, we continue to believe the Healthcare sector will benefit from industry tailwinds of ageing demographics, growing middle class and urbanisation trends in China.

MSCI China Healthcare Index corrected 7% as sentiment weakened over China’s anti-corruption campaign

Authorities planning a one-year nationwide anti-corruption campaign as part of its heightened push to combat corruption in the Healthcare sector

Expecting short-term share price volatility and uncertainties over sales growth, but positive over the long term

Source: OCBC

[behappyalways]

Global storm of deficient drugs!
Pain relief, antibiotics, and cancer drugs are all in urgent need...
Capsule shortages drag down antibiotics
Pharmacists: use alternative drugs to fear drug resistance

全球陷缺藥風暴!止痛.抗生素.癌症藥都告急...膠囊缺貨拖累抗生素 藥師:用替代藥恐抗藥性｜非凡財經新聞｜20230901

https://m.youtube.com/watch?v=jxBMElCiduc

[behappyalways]

The COVID Gravy Train Is Over: Pfizer & Moderna Shares Down 35% & 49% This Year
https://www.zerohedge.com/markets/covid ... nd-49-year

[winston]

CHINA HEALTHCARE – LOOK BEYOND THE SHORT-TERM PRESSURE; HIGHLIGHTING SELECT PICKS

Given the lingering macro uncertainties, we favour a selective approach and prefer quality healthcare companies with positive risk reward propositions that include solid product pipelines, company specific catalysts and supportive valuations.

Within our coverage, we see long-term growth prospects in CSPC Pharmaceutical (1093 HK; FV: HKD8.77; one of the leading pharmas with strong innovative strength), Sinopharm (1099 HK; FV: HKD25; largest distributor of pharmaceutical and healthcare products in China); Wuxi Apptec (2359 HK; FV: HKD124.7; a global leader in CRDMO, riding the wave of pharmaceutical outsourcing).

Marketing activities and hospital procurement were disrupted in 3Q23 but the impact from the anti-corruption campaign appears to be largely manageable

Some lingering pressures in 4Q23 but likely to see a broader recovery and normalisation of sales in 2024

Market focus will shift from the probe back to long-term structural growth drivers

Source: OCBC