Where can a capital investor put his money, today, in the stock market, in a context particularly disturbed by skyrocketing inflation and long-term interest rates? “Historically, health is the sector least affected by inflation, which is the issue that most concerns us today. It has a strong potential for innovation and has benefited from the structural changes of recent years. The efforts of companies to reduce their costs have been beneficial in terms of margins”, judge Gregor Hirt, head of multi-asset investments at Allianz Global Investors, interviewed by Capital.
In addition, the health sector has been transformed. Although “the traditional parts, such as oncology (cancerology), require investments over a very long period, the industry is moving towards thriving and individualized subsectors, with very expensive drugs”, observes the expert. Finally, the sector “benefits from big data and artificial intelligence, which allow it to reduce its costs,” emphasizes Gregor Hirt, for whom the stock market valuation of the health sector continues to be attractive. It remains to be seen which health sector stocks to select…
Sanofi: defensive qualities, facing the war in Ukraine, but disappointment in the treatment of breast cancer
Sanofi, the main French heavyweight in the sector, has been disappointing lately. The company has published negative phase II clinical results on its oral treatment for a specific form of breast cancer. “This is likely not to ensure the quality of the pipeline (work in process). More than ever, Sanofi appears to rely solely on Dupixent (dupilumab, medicine against atopic dermatitis and moderate to severe asthma), of which the peak sales (peak sales) is now expected at a minimum of 13 billion euros. However, at the beginning of the year, the stock benefits from its defensive profile, with the pharmaceutical industry being relatively protected from the consequences linked to the war in Ukraine (inflation and shortage of raw materials)”, underlines Stephan Dubosq, analyst at Kirao Asset . Management, interviewed by Capital.
Astrazeneca: the best in its class?
More famous than ever among the general public since the launch of its (controversial) vaccine against Covid-19, AstraZeneca shows an even more defensive profile, with an attractive pipeline of products in development. A pipeline that should result in “stronger growth than that of competitors,” Florian Allain, manager of Mandarine Gestion, recently underlined in an interview with Capital. A more attractive growth and risk profile than that of the competitors, reflected in a premium on the stock market… but this premium is still too low in our opinion, which still gives hope of a good upside potential in the medium term.
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