A complex and
constantly evolving sector
The healthcare sector is constantly evolving and is facing major challenges where a deep scientific understanding and strategic investments from both the private sector and society will be key.
The healthcare sector accounts for a large part of countries’ spending. The US spends around 17 percent of the country’s GDP on healthcare, and within the OECD countries the average spending is around 13 percent of GDP. In emerging markets / developing countries, like China and India, the share is significantly lower at 5 and 3 percent respectively. There is a clear connection between the prosperity of a country and its healthcare spending, with richer countries tending to spend more on healthcare, both in absolute numbers and as a share of GDP.
Rising standards of living and an ageing global population, speaks for continued growth of the healthcare sector. These mega trends tend to involve a higher degree of ‘diseases of affluence’ such as obesity and diabetes.
Sub-sector focus
At Rhenman & Partners we divide the sector into four sub-sectors: pharmaceuticals, biotech, medical technology and healthcare services. Our portfolio managers are specialists in one or two of these sub-sectors.
Pharmaceuticals
Companies with meaningful, effective treatments.
Biotech
Companies at the cutting edge of medical research and development.
Medical technology
Technology which is revolutionizing patient care.
Healthcare services
Services which help improve and make care more efficient, such as hospitals, distributors and insurance companies.