The healthcare industry is always evolving, and new therapies drive ongoing growth over and above the growth from the ageing demographic. However, it’s important that investors recognise that the sector’s growth doesn’t necessarily translate equally to each participant, for example, when new therapies displace incumbents. Three particular drivers of change in healthcare: cost, technology, and better informed patients, are adding to more traditional forces in the sector and accelerating the pace of change. As a result, we’ll see business models evolving and this will drive increasing uncertainty for some incumbent operators. In this report, we examine these dynamics in detail, and ask if Cochlear, Ramsay and Sonic all deserve to be on such high PE’s. (VIEW LINK)
Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of Equity, Fixed Income, Multi-Asset and Alternative strategies.
Very interesting article, thanks for sharing. I have a family member who's Deaf, and another who works for VicDeaf. Anecdotally, it seems many of the adults who've grown up Deaf are not interested in the Cochlear implant - the surgery is not without risks, and many are quite happy without it. My own family member was told he risked losing the residual hearing he has so he didn't proceed.