Stockholm (HedgeNordic)
\nBy Eugeniu Guzun 08\/09\/2020<\/p>\n
\u201cThere is a new sub-segment that has evolved rapidly during this year in the aftermath of the Covid pandemic within digital care\u201d Susanna Urdmark Portfolio Manager Rhenman Healthcare Equity L\/S.<\/strong><\/p>\n Stockholm (HedgeNordic) \u2013 Whereas some industries such as retail or banking are almost unrecognizable from a decade or two ago due to digitalization, healthcare has been lagging behind other industries in the adoption of technologies. The Covid-19 pandemic has served as a big impetus for the digital transformation of healthcare.<\/p>\n \u201cThere is a new sub-segment that has evolved rapidly during this year in the aftermath of the Covid pandemic within digital care,\u201d Susanna Urdmark (pictured), who manages Rhenman Healthcare Equity L\/S alongside Henrik Rhenman, tells Bloomberg. According to Urdmark, the digitalization of healthcare \u201cis late compared to many other sectors of the economy.\u201d However, \u201ctechnology companies within this segment have made great progress and with the strong increase in volumes and revenues, they have now become investable.\u201d<\/p>\n \u201cThere is a new sub-segment that has evolved rapidly during this year in the aftermath of the Covid pandemic within digital care.\u201d<\/p>\n The growth of the digital care sector is also reflected in the increasing number of public offerings and deals in the sector, according to Urdmark. U.S. provider of virtual healthcare Teladoc Health announced last month the acquisition of Livongo Health, one of Rhenman Healthcare Equity L\/S\u2019s holdings, in a deal worth $18.5 billion. Livongo Health has developed a technology to help monitor and manage chronic conditions such as diabetes. The merger between the companies would create \u201ca global leader in consumer-centered virtual care,\u201d according to a press release announcing the acquisition.<\/p>\n \u201cWe have had four acquisitions and one merger in the fund so far this year,\u201d Urdmark tells Bloomberg. \u201cIt is somewhat counterintuitive that the smaller companies are willing to accept more development risk than their larger counterparties,\u201d she points out. \u201cAs a result, a lot of innovation takes place within the smaller and more nimble companies, which are later acquired by the large firms that need to improve their pipelines.\u201d<\/p>\n \u201cA lot of innovation takes place within the smaller and more nimble companies, which are later acquired by the large firms that need to improve their pipelines.\u201d<\/p>\n Urdmark and her team \u201cexpect to see an expanded adoption of digitization within the healthcare sector driven by the need for more cost-effective care and improved technical solutions, in particular within diagnostics.\u201d She goes on to say that \u201cit\u2019s a sub-segment that investors will spend more time on.\u201d<\/p>\n \u201cWe expect to see an expanded adoption of digitization within the healthcare sector driven by the need for more cost-effective care and improved technical solutions, in particular within diagnostics.\u201d<\/p>\n Rhenman Healthcare Equity L\/S\u2019s main share class reflected in the Nordic Hedge Index gained 3.5 percent year-to-date through the end of August, while the fund\u2019s U.S. dollar-denominated share class gained 9.1 percent this year. According to Urdmark, the Covid-19 pandemic has affected some holdings owned by the healthcare-focused, long-biased long\/short equity fund she manages with Henrik Rhenman. \u201cSome companies have temporarily been hit by the pandemic, but their ability to grow long term hasn\u2019t changed,\u201d Urdmark tells Bloomberg. \u201cMaybe you have to look forward to 2022 to see what a normal state will be. We accept that there will be weak revenue and profit growth this and maybe parts of next year.\u201d<\/p>","protected":false},"excerpt":{"rendered":" Stockholm (HedgeNordic) By Eugeniu Guzun 08\/09\/2020 \u201cThere is a new sub-segment that has evolved rapidly during this year in the aftermath of the Covid pandemic within digital care\u201d Susanna Urdmark Portfolio Manager Rhenman Healthcare Equity L\/S. Stockholm (HedgeNordic) \u2013 Whereas some industries such as retail or banking are almost unrecognizable from a decade or two […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2808","post","type-post","status-publish","format-standard","hentry","category-okategoriserad"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/posts\/2808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/comments?post=2808"}],"version-history":[{"count":4,"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/posts\/2808\/revisions"}],"predecessor-version":[{"id":2824,"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/posts\/2808\/revisions\/2824"}],"wp:attachment":[{"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/media?parent=2808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/categories?post=2808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhepa.se\/en\/wp-json\/wp\/v2\/tags?post=2808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}