The healthcare sector, often seen as a defensive play, has presented a fascinating dichotomy in recent times.
While some corners of the market, particularly those tied to the exciting, high-growth narratives of artificial intelligence and GLP-1 drugs, have soared, the broader healthcare landscape has, in certain areas, experienced a bit of a pullback. This creates compelling "budget" opportunities for discerning investors. As of mid-2025, several factors are at play: an aging global population continues to drive fundamental demand, while at the same time, discussions around drug pricing, increased medical utilization trends (post-pandemic catch-up surgeries and treatments), and evolving regulatory landscapes (like the Inflation Reduction Act's impact on Medicare Part D) introduce volatility.
However, for those looking beyond the immediate headlines, this environment allows for the identification of established industry leaders that are currently trading at attractive valuations.
